Abstract

http://ssrn.com/abstract=2292106
 
 

References (26)



 


 



Merger Externalities in Oligopolistic Markets


Klaus Peter Gugler


Vienna University of Economics and Business Administration; European Corporate Governance Institute (ECGI)

Florian Szücs


German Institute for Economic Research (DIW Berlin)

June 11, 2013

DIW Berlin Discussion Paper No. 1321

Abstract:     
We quantify externalities on profitability and market shares of competing firms in oligopolistic markets through the transition from an n to an n-1 player oligopoly after a merger. Competitors are identified via the European Commission’s market investigations and our methodology allows us to distinguish the externality due to the change in market structure from the merger e ffect. We obtain results consistent with the predictions of standard oligopoly models: rivals expand their output and increase their profits, whereas merging firms are negatively aff ected. This indicates that on average the market power e ffects of large mergers outweigh the efficiencies.

Number of Pages in PDF File: 34

Keywords: oligopolistic competition, rivals, mergers, externalities

JEL Classification: JEL L13, L40, G34

working papers series


Download This Paper

Date posted: July 11, 2013 ; Last revised: September 19, 2013

Suggested Citation

Gugler, Klaus Peter and Szücs, Florian, Merger Externalities in Oligopolistic Markets (June 11, 2013). DIW Berlin Discussion Paper No. 1321. Available at SSRN: http://ssrn.com/abstract=2292106 or http://dx.doi.org/10.2139/ssrn.2292106

Contact Information

Klaus Gugler
Vienna University of Economics and Business Administration ( email )
Welthandelsplatz 1
Vienna, Wien 1020
Austria
HOME PAGE: http://www.wu.ac.at/iqv/mitarbeiter/gugler
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
Florian Szücs (Contact Author)
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
Feedback to SSRN


Paper statistics
Abstract Views: 176
Downloads: 35
References:  26

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.281 seconds