Operational implications of yield uncertainty in mergers and acquisitions

In this paper, we study the implications of yield uncertainty in firms' mergers and acquisitions, which interfaces between economics and production management. Specifically, we explore three sources of merger effects (i.e., the competition effect, the yield uncertainty effect, and the cost synergy effect) in a Cournot oligopolistic market. The yield uncertainty effect refers to a statistical reduction of yield uncertainty for the post-merger...