Mobile Phone Mergers and Market Shares Short Term Losses and Long Term Gains

16 Pages Posted: 2 Nov 2006

See all articles by Jeremy T. Fox

Jeremy T. Fox

University of Michigan

Hector Perez Saiz

Bank of Canada, Financial Stability Department, Financial Studies Division

Date Written: September 2006

Abstract

The US mobile phone industry has dramatically consolidated through mergers. We investigate whether a merger increases the performance of a combined carrier over the sum of its constituent parts. We first directly compare the quantities of post-merger carriers to those of their pre-merger predecessors. This analysis considers only two years after a merger, as most carriers engage in new mergers after that time. To examine possible long run implications, we also explore the cross sectional relationship between outcomes and measures of firm size, as firm size is increased in a merger. We examine the market share of new subscribers. We also examine two measures of firm size: the amount of a carrier's geographic coverage and its past subscriber count.

Suggested Citation

Fox, Jeremy T. and Perez Saiz, Hector, Mobile Phone Mergers and Market Shares Short Term Losses and Long Term Gains (September 2006). NET Institute Working Paper No. 06-16, Available at SSRN: https://ssrn.com/abstract=941188 or http://dx.doi.org/10.2139/ssrn.941188

Jeremy T. Fox (Contact Author)

University of Michigan ( email )

611 Tappan St.
Ann Arbor, MI 48104
United States
734 330-2854 (Phone)

Hector Perez Saiz

Bank of Canada, Financial Stability Department, Financial Studies Division ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada
+1 613 782 7184 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
232
Abstract Views
1,287
Rank
239,376
PlumX Metrics