1. Ethical Considerations
The various ethical principals considered in this research are:
• Honesty: The data, results, methods and procedures, and publication status have been reported honestly. The data hasn’t been fabricated, falsified, or misrepresented.
• Objectivity: With regard to experimental design, data analysis, data interpretation and other aspects of research where objectivity is expected, bias has been avoided.
• Carefulness: Careless errors and negligence has been avoided to the extent possible; The research has been carefully and critically examined. Good records of research activities, such as data collection, research design, and correspondence with agencies or journals has been maintained.
• Openness: The data, results, ideas and resources have been shared. I would also like to submit that I am open to criticism and new ideas.
• Respect for Intellectual Property: Unpublished data, methods, or results without permission haven’t been used. Proper acknowledgement or credit for all contributions to research has been given. There is no plagiarism.
The collusion theory (Eckbo, 1985) presumes the number of key players in the industry dwindle when firms experience wealth effects, which makes it simple for companies to develop a cartel(Stigler, 1964; Eckbo, 1983). Academic research earlier carried out found no aid for this theory(Eckbo, 1983; Stillman, 1983; Fee and Thomas, 2004; Sharur, 2004). One possible reason as to why Eckbo and Stigler obtained no support is that the rival companies might have been diversified conglomerates and meagrely affected by an event in the minor industry(McAfee and Williams, 1988). We can have an argument that the sequence of the end result obtained by Eckbo(1983) and Eckbo and Wier(1985) is unstable with anticompetitive mergers(Schuman, 1989).
This theory assumes that a merger could guide to monopolistic or oligopsonistic competition (Robinson, 1933; Galbraith, 1952).If there are only a few buyers and there are many sellers, then the sellers are being paid off by the buyers against each other. Buyers can then order concessions like reduction in the price, specific delivery times,dates or product varieties, threatening to switch to another supplier if the present one does not want to deliver. A merger declaration will result in the positive wealth impact for the opponent if the theory holds good(Galbraith, 1952; Snyder, 1996; Stillmann, 1983; Fee and Thomas, 2004). Nonetheless the drawback for a victorious oligopsonistic organisation is the number of members involved and the parameters adjusting the suppliers condition.
