This article presents models of horizontal mergers extended with management factors. The paper contains an analysis of mathematical models of mergers irrespective of exogenous and endogenous mergers division. The analysis shows that even when a merger may be potentially more efficient, managers in a merged firm do not necessarily want this to happen. The problems due to a lack of trust can even offset the possible synergies thereby making a merged firm less efficient.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.