Static or Dynamic Efficiency: Horizontal Merger Effects in the Wireless Telecommunications Industry

Michal Grajek, K. Gugler (), Tobias Kretschmer and I. Mişcişin ()
Additional contact information
K. Gugler: WU (Vienna University of Economics and Business)
I. Mişcişin: University of Vienna

Review of Industrial Organization, 2019, vol. 55, issue 3, No 3, 375-402

Abstract: Abstract This paper studies five mergers in the European wireless telecommunication industry and analyzes their impact on prices and capital expenditures of both merging carriers and their rivals. We find substantial heterogeneity in the relationship between increases in concentration and carriers’ prices. The specifics of each merger case clearly matter. Moreover, we find a positive correlation between the price and the investment effect; when the prices after a merger increase (decrease), the investments increase (decrease) too. Thus, we document a trade-off between static and dynamic efficiency of mergers.

Keywords: Telecom mergers; Static and dynamic efficiency; Difference-in-difference (search for similar items in EconPapers)
JEL-codes: G34 L22 L96 O33 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://link.springer.com/10.1007/s11151-019-09723-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Static or dynamic efficiency: Horizontal merger effects in the wireless telecommunications industry (2017)
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:kap:revind:v:55:y:2019:i:3:d:10.1007_s11151-019-09723-4

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2

DOI: 10.1007/s11151-019-09723-4

Access Statistics for this article

Review of Industrial Organization is currently edited by L.J. White

More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().