2006–2010

Industry Concentration and Welfare: On the Use of Stock Market Evidence from Horizontal Mergers

Särtryck nr 2010:23

Författare: Sven-Olof Fridolfsson och Johan StennekÅr: 2010 Publikation: Economica Årgång (nr): 77 (308) Sidor: 734–750
Artikeln online (behörighet kan krävas)


There is diverging empirical evidence on the competitive effects of horizontal mergers: consumer prices (and thus presumably competitors’ profits) often rise while competitors’ share prices fall. Our model of endogenous mergers provides a possible reconciliation. It is demonstrated that anti-competitive mergers may reduce competitors’ share prices, if the merger announcement informs the market that the competitors lost a race to buy the target. Also the use of ‘first rumour’ as an event may create similar problems of interpretation. We also indicate how the event-study methodology may be adapted to identify competitive effects and thus the welfare consequences for consumers.


Referens:
Fridolfsson, Sven-Olof och Johan Stennek (2010), "Industry Concentration and Welfare: On the Use of Stock Market Evidence from Horizontal Mergers". Economica 77(308), 734–750.

Aktuell forskare

Lars Calmfors

Forskningsområden: Arbetsmarknads- och makroekonomi.

Några av de frågor Lars Calmfors försöker besvara i sin forskning:

  • Orsaker till arbetslöshet?
  • Hur fungerar EMU?
  • Hur kan olika institutionella arrangemang bidra till en lämplig finanspolitik? 

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