A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris

26 Pages Posted: 23 Dec 2012

See all articles by Philippe Choné

Philippe Choné

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); CESifo (Center for Economic Studies and Ifo Institute)

Laurent Linnemer

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Date Written: December 2012

Abstract

We propose a method of building control groups for retrospective merger evaluation. The procedure involves two parameters: a distance or radius, and an ‘order of exposure’ reflecting the notion that a merger can affect an outlet in a more or less direct way. We implement the method of estimating the price effect of a merger in the Paris parking market and illustrate the consequences of including indirectly exposed outlets in the control group. The methodology applies to any industry with spatial competition and allows one to check the sensitivity of the results to the choice of the control group.

Suggested Citation

Choné, Philippe and Linnemer, Laurent, A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris (December 2012). The Journal of Industrial Economics, Vol. 60, Issue 4, pp. 631-656, 2012, Available at SSRN: https://ssrn.com/abstract=2193193 or http://dx.doi.org/10.1111/joie.12003

Philippe Choné (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Laurent Linnemer

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
3
Abstract Views
334
PlumX Metrics