The Effect of Horizontal Mergers on Efficiency and Market Power: An Application to the Argentine Hamburger Market

German Coloma ()

No 705, CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA

Abstract: This paper analyzes the behavior of the Argentine hamburger market during the period 2013-2018, to see if an important merger that occurred by the end of 2015 (the BRF/MRP merger) had any discernable market-power or efficiency effects. To do this, we run an econometric demand-and-supply model, and we find that there is an appreciable cost reduction that more than counterbalances the price increases induced by the merger. This implies that total consumers’ surplus may have grown as a consequence of the merger.

Keywords: Merger; hamburger; Argentina; market power; efficiency (search for similar items in EconPapers)
JEL-codes: C32 L13 L41 L66 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2019-12
New Economics Papers: this item is included in nep-com and nep-ind
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Persistent link: https://EconPapers.repec.org/RePEc:cem:doctra:705

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