Ex-post examination of mergers: effects on retail prices
Koki Arai
Asia-Pacific Journal of Accounting & Economics, 2017, vol. 24, issue 1-2, 145-162
Abstract:
Merger control can be assessed simply by observing price movements of the product in question. In this study, three ex-post merger evaluations show statistically significant increase in price. Thus, in each case, the change in market power is analyzed in terms of changes in market sales and market share. The analyses indicate that market sales values increased, but market share decreased significantly. Although several studies showed the market price situation before and after a merger, this study is the first to analyze the appropriateness of merger control in terms of market sales and market share. In addition, one of the merging parties was likely to reposition its production lines, indicating that mergers and acquisitions may be used as a tool for strategic product differentiation. That is, under such merger regulations, leading examples of a merging party developing a marketing strategy are indicated.
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:taf:raaexx:v:24:y:2017:i:1-2:p:145-162
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DOI: 10.1080/16081625.2015.1067148
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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan
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