Mergers and difference-in-difference estimator: Why firms do not increase prices?

Juan Luis Jiménez*, Jordi Perdiguero

*Autor corresponent d’aquest treball

Producció científica: Contribució a revistaArticleRecercaAvaluat per experts

6 Cites (Scopus)

Resum

Difference-in-difference methods are being increasingly used to analyze the impact of mergers on pricing and other market equilibrium outcomes. Using evidence from an exogenous merger between two retail gasoline companies in a specific market in Spain, this paper shows how concentration did not lead to a price increase. In fact, the conjectural variation model concludes that the existence of a collusive agreement before and after the merger accounts for this result, rather than the existence of efficient gains. This result may explain empirical evidence reported in the literature according to which mergers between firms do not have significant effects on prices.

Idioma originalAnglès
Pàgines (de-a)285-311
Nombre de pàgines27
RevistaEuropean Journal of Law and Economics
Volum45
Número2
DOIs
Estat de la publicacióPublicada - 1 d’abr. 2018

Fingerprint

Navegar pels temes de recerca de 'Mergers and difference-in-difference estimator: Why firms do not increase prices?'. Junts formen un fingerprint únic.

Com citar-ho