Merger Policy at the Margin: Western Refining's Acquisition of Giant Industries
U.S. Federal Trade Commission - Bureau of Economics
September 19, 2013
U.S. Federal Trade Commission, Bureau of Economics, Working Paper No. 319
In May 2007 the Federal Trade Commission failed to win a preliminary injunction in U.S. District Court that would have blocked the merger of two refiners that served Albuquerque, NM and surrounding areas. This study compares estimates of the post-merger price effect to the price effects predicted by economic experts on both sides of the case. I find little scope to interpret the evidence as consistent with an anticompetitive post-merger price effect. I also highlight difficulties involved in econometrically identifying small effects even with an abundance of pricing data.
Number of Pages in PDF File: 22
Keywords: Merger Retrospectives, Petroleum Industry
JEL Classification: L10, L41, L71Accepted Paper Series
Date posted: September 21, 2013 ; Last revised: September 25, 2013
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