🗊Презентация Ryanair & Aer Lingus

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SUMMARY 
SUMMARY 
BACKGROUND INFORMATION ON THE FIRMS AND MARKET
BRIEF OVERVIEW OF THE ENTRY DETERRENCE AND EFFICIENCY GAINS MODELS 
THE FIRST MERGER ATTEMPT AND TRIAL PROCESS
APPEALS OF BOTH PARTIES
SECOND AND THIRD MERGER ATTEMPTS
THE EVOLUTION OF THE MARKET AFTER DECISION
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SUMMARY SUMMARY BACKGROUND INFORMATION ON THE FIRMS AND MARKET BRIEF OVERVIEW OF THE ENTRY DETERRENCE AND EFFICIENCY GAINS MODELS THE FIRST MERGER ATTEMPT AND TRIAL PROCESS APPEALS OF BOTH PARTIES SECOND AND THIRD MERGER ATTEMPTS THE EVOLUTION OF THE MARKET AFTER DECISION

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Competition and efficiency
Model from Dusoet al. (2007):
Main idea – we can measure gain in efficiency from merger (that is cost reduction) by competitors’ stock price reaction at the date of the merger announcement.
This can be easily find from figure:
CS-consumer surplus, П is profit: m for merge,
 c for competitors, e is cost reduction.
Giulia Sargenti at “Ryanair and Aer Lingus 
Merger Cases” measured that price reaction in first
days is insignificant, that means that efficiency 
gain is insignificant small. (The cost reduction was one of the main argument of Ryanair)
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Competition and efficiency Model from Dusoet al. (2007): Main idea – we can measure gain in efficiency from merger (that is cost reduction) by competitors’ stock price reaction at the date of the merger announcement. This can be easily find from figure: CS-consumer surplus, П is profit: m for merge, c for competitors, e is cost reduction. Giulia Sargenti at “Ryanair and Aer Lingus Merger Cases” measured that price reaction in first days is insignificant, that means that efficiency gain is insignificant small. (The cost reduction was one of the main argument of Ryanair)

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