This paper explores the evolution of the coarsely grained phase-space
density in mergers and in galaxy formation. In particular, numerical s
imulations are used to determine the properties of remnants produced b
y ''major'' mergers between equal-mass galaxies. Contrary to some exis
ting claims, remnants of mergers between stellar disks are found to la
ck sufficient material at high phase-space densities to be identified
as elliptica! galaxies. We quantify this effect by computing the cumul
ative coarsely grained phase-space distribution, s(f)BAR, for the remn
ants and compare it to that derived from simple models of the mass pro
files of ellipticals. In so doing, we estimate that the discrepancy is
confined to the inner approximately 15% of the stellar mass. In princ
iple, this problem can be circumvented by dissipation in gas and star
formation, but this process by itself probably requires that the proge
nitors comprise a gas fraction approximately 25%-30% of their luminous
mass. More directly, as shown by additional simulation, the phase-spa
ce discrepancy can be reconciled by including compact bulges in the pr
ogenitors having approximately 20%-25% the mass of the disks. We furth
er speculate on the relevance of our analyses to more general situatio
ns where the progenitor galaxies have very different masses or to remn
ants produced from repeated mergers in a dense galactic environment. A
number of observational signatures are noted which may help to establ
ish the importance of merging to the structure and origin of early-typ
e galaxies. In addition, we apply the methods developed here to the sa
mple of hot stellar systems cataloged recently by Bender et al. A stro
ng correlation is found between the luminosity of these objects and th
e ''effective'' coarsely grained phase density (f(eff)BAR is-proportio
nal-to 1/sigmar(eff)2). Implications of these findings for the interpr
etation of the fundamental plane of elliptical galaxies are discussed.