Mergers and market power: evidence from rivals' responses in European markets.

We analyze the effects of M&A on the markups of non‐merging rival firms across a broad set of industries. We exploit expert market definitions from the European Commission's merger decisions to identify relevant competitors in narrowly defined product markets and estimate markups as a measure of mar...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 53; no. 4; pp. 678 - 703
Autores principales: Stiebale, Joel, Szücs, Florian
Formato: Artículo
Publicado: Wiley-Blackwell Dec2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Mergers and market power: evidence from rivals' responses in European markets.
      aug:
        au:
          Stiebale, Joel
          Szücs, Florian
        affil:
          DICE, Heinrich Heine University Düsseldorf
          Wirtschaftsuniversität Wien
      su:
        European Commission
        Mergers & acquisitions
        Market power
      sug:
        subj:
          European Commission
          Mergers & acquisitions
          Market power
      ab: We analyze the effects of M&A on the markups of non‐merging rival firms across a broad set of industries. We exploit expert market definitions from the European Commission's merger decisions to identify relevant competitors in narrowly defined product markets and estimate markups as a measure of market power. Our results indicate that rivals increase their markups after mergers. Consistent with increases in market power, the effects are particularly pronounced when pre‐merger concentration is high, when competitors are few, and when relevant markets are national. Merger rivals also reduce their employment, sales, and investment, whereas their profits increase.
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    language: English
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