Kapitalfondes opkøb af butikskæder

Niels Blomgren-Hansen
Additional contact information
Niels Blomgren-Hansen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

No 06-2007, Working Papers from Copenhagen Business School, Department of Economics

Abstract: According to the Competition Act, a merger that impedes eective competition signi cantly, in particular by creating or strengthening a dominant postition, shall be prohibited. To decide whether this is the case the authorities need a quanti able model of the relationship between the variables that are directly aected by the merger and some measure of competition. In this paper we set up and calibrate a simple model of the interaction of the retail and the wholesale markets for high-end cosmetics in Denmark based on the Matas case. The model predicts that the acquisition of Matas - comprising roughly half of the market for high end cosmetics - may have a significant on retail prices and that the authorities had good reasons for making its approval conditioned on the removal of a number of contract-based barriers to entry. Analytically the main results are: (1) In a linear model with constant marginal costs the optimal wholesale prices are unexpected by the structure in the retail sector. (2) The ect on of buyer-power induced quantity dioscounts depends on the speci c design of the scheme: A relative discount on the list price the independent shops are charged increases the average retail price; A xed reduction relative to the pre-merger price reduces the average retail price). (3) Buyer-power induced retail price maintenance (RPM) increases the average retail price. RPM increases the competitiveness and pro ts of the merged shops if producers keep whole-sale prices unchanged. If, however, the producers adjust their wholesale prices, then RMP hurts merged and independent shops alike and benefits only the producers.

Keywords: na (search for similar items in EconPapers)
JEL-codes: G10 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2007-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://openarchive.cbs.dk/cbsweb/handle/10398/7516 (application/pdf)
Full text not avaiable

Related works:
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:hhs:cbsnow:2007_006

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Copenhagen Business School, Department of Economics Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1.floor, DK-2000 Frederiksberg, Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by CBS Library Research Registration Team ().