Dynamic Competition, Valuation, and Merger Activity
构建了一个多企业异质产品动态寡头模型，研究产品市场竞争与投资估值的互动，并用估计参数预测并购公告前后竞争对手的股票回报。
ABSTRACT We model the interactions between product market competition and investment valuation within a dynamic oligopoly. To our knowledge, the model is the first continuous‐time corporate finance model in a multiple firm setting with heterogeneous products. The model is tractable and amenable to estimation. We use it to relate current industry characteristics with firm value and financial decisions. Unlike most corporate finance models, it produces predictions regarding parameter magnitudes as well their signs. Estimates of the model's parameters indicate strong linkages between model‐implied and actual values. The paper uses the estimated parameters to predict rivals’ returns near merger announcements.