Abstract

http://ssrn.com/abstract=1529791
 
 

Footnotes (41)



 


 



Demand Side Merger Efficiencies


David Reitman


Charles River Associates, Inc.

Dipan Ghosh


Charles River Associates (CRA)

December 30, 2009


Abstract:     
Mergers can generate demand side efficiencies that benefit customers in a number of ways, including procurement savings, transaction efficiencies, and quality improvements. We show that per-unit demand side efficiencies and marginal cost efficiencies of the same magnitude have an equivalent impact on the post-merger market in terms of output and welfare. Consequently, there is no reason to distinguish between marginal cost savings and demand side per-unit efficiencies when evaluating the impact of a merger. We demonstrate how various techniques for evaluating the impact of mergers – compensating marginal cost reductions, upward pricing pressure, and merger simulation – can be readily adapted to incorporate demand side as well as supply side efficiencies.

Number of Pages in PDF File: 37

Keywords: horizontal mergers, efficiencies

JEL Classification: K21, L41

working papers series





Download This Paper

Date posted: January 1, 2010  

Suggested Citation

Reitman, David and Ghosh, Dipan, Demand Side Merger Efficiencies (December 30, 2009). Available at SSRN: http://ssrn.com/abstract=1529791 or http://dx.doi.org/10.2139/ssrn.1529791

Contact Information

David Reitman (Contact Author)
Charles River Associates, Inc. ( email )
1201 F Street, N.W., Suite 700
Washington, DC 20004-1204
United States
Dipan Ghosh
Charles River Associates (CRA) ( email )
1201 F. St. NW
Ste. 700
Washington, DC 20004
Feedback to SSRN


Paper statistics
Abstract Views: 626
Downloads: 126
Download Rank: 137,421
Footnotes:  41

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.328 seconds