What Determines Heterogeneous Merger Effects on Competitive Outcomes?

Ralph Siebert

Journal of Industrial Economics, 2022, vol. 70, issue 1, 217-256

Abstract: We examine whether heterogeneous merger effects predominantly stem from technological or product market heterogeneities. Using detailed firm and product‐specific information, we employ a heterogeneous merger effects model. Our results show that merging firms realize substantial heterogeneous post‐merger effects on competitive outcomes such as production or prices. Merger effects vary substantially across merging firms, depending on the firms' pre‐merger efficiency levels, price elasticities, and innovative activities. Firms' efficiency level and price elasticities prior to merging determine large post‐merger heterogeneities. The results show that product market attributes (differences in inefficiencies and price elasticities) cause larger post‐merger heterogeneities compared with technology market attributes.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/joie.12283

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:70:y:2022:i:1:p:217-256

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().