2018

Threatening to Buy: Private Equity Buyouts and Antitrust Policy

Reprint No. 2018:12

Author(s): Pehr-Johan Norbäck, Lars Persson and Joacim TågYear: 2018 Title: Economics Letters Volume (No.): 164 (March) Pages: 31–34
Online article (restrictions may apply)

Threatening to Buy: Private Equity Buyouts and Antitrust Policy Pehr-Johan Norbäck, Lars Persson and Joacim Tåg


Private equity firms (PE firms) have become common owners of established firms in concentrated markets. We show that the threat of a PE acquisition can trigger incumbent mergers in an otherwise merger-stable industry. This can help antitrust authorities maximize consumer surplus because previously privately unprofitable – but consumer surplus-enhancing – mergers now take place. We thus predict that merger waves among incumbents should follow the development of a local PE industry.


Reference:
Norbäck, Pehr-Johan, Lars Persson and Joacim Tåg (2018), "Threatening to Buy: Private Equity Buyouts and Antitrust Policy". Economics Letters 164(March), 31–34.

Pehr-Johan Norbäck

Contact

Ph: +46 8 665 4522
Mob: +46 73 574 3379
pehr-johan.norback@if...

Lars Persson

Contact

Ph: +46 8 665 4504
lars.persson@ifn.se

Joacim Tåg

Contact

Ph: +46 8 665 4524
joacim.tag@ifn.se

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se