Merger externalities in oligopolistic markets

Klaus Gugler and Florian Szücs

International Journal of Industrial Organization, 2016, vol. 47, issue C, 230-254

Abstract: We evaluate the external effects of 183 large mergers at the market level by assessing the impact on the main competitors of the merging firms. Using synthetic control groups and difference in difference estimation, we find that the return on assets of rival firms increases significantly after a merger. The size of the effect varies strongly with market characteristics and the intensity of competition.

Keywords: Mergers; Spillovers; Rivals; Synthetic controls (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Merger Externalities in Oligopolistic Markets (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:47:y:2016:i:c:p:230-254

DOI: 10.1016/j.ijindorg.2016.05.003

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