Estimating the Potential Gains from Mergers

Peter Bogetoft and Dexiang Wang

No 24213, Unit of Economics Working Papers from Royal Veterinary and Agricultural University, Food and Resource Economic Institute

Abstract: We introduce simple production economic models to estimate the potential gains from mergers. We decompose the gains into technical efficiency, size (scale) and harmony (mix) gains, and we discuss alternative ways to capture these gains. We propose to approximate the production processes using the non-parametric Data Envelopment Analysis (DEA) approach, and we use the resulting operational approach to estimate the potential gains from merging agricultural extension offices in Denmark. Table of Contents: 1. Introduction, 2. Literature, 3. Production Models, 4. Measures of Merger Gains, 5. Decomposing Merger Gains, 6. Alternative Decompositions, 7. The Danish Agricultural Extension Services, 8. Final Remarks, References. Key Words: Data Envelopment Analysis, management, organization, mergers

Keywords: Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Pages: 30
Date: 2003
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Citations: View citations in EconPapers (13)

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Journal Article: Estimating the Potential Gains from Mergers (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rvaewp:24213

DOI: 10.22004/ag.econ.24213

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