Static or dynamic efficiency: Horizontal merger effects in the wireless telecommunications industry

Michal Grajek, Klaus Gugler, Tobias Kretschmer and Ion Mişcişin
Additional contact information
Klaus Gugler: Vienna University of Economics and Business
Ion Mişcişin: University of Vienna

No ESMT-17-04, ESMT Research Working Papers from ESMT European School of Management and Technology

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 effects; when the prices after merger increase (decrease), the investments increase (decrease) too. Thus, we document a trade-off between static and dynamic efficiencies 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)
Pages: 40 pages
Date: 2017-12-19
New Economics Papers: this item is included in nep-com, nep-eur and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://static.esmt.org/publications/workingpapers/ESMT-17-04.pdf First version, 2017 (application/pdf)

Related works:
Journal Article: Static or Dynamic Efficiency: Horizontal Merger Effects in the Wireless Telecommunications Industry (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:esm:wpaper:esmt-17-04

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