A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris
AbstractMost retrospective merger studies resort to the treatment effect approach, comparing the price dynamics in a treatment group and in a control group. We propose a systematic method to construct the groups, which applies to any industry with spatial competition. The method is consistent with the fact that mergers alter oligopolistic equilibria in complex ways, and thus that seemingly distant entities may be affected through indirect channels. An illustration based on a merger in the Parisian parking market is provided.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3268.
Date of creation: 2010
Date of revision:
merger retrospective analysis; treatment effect models;
Other versions of this item:
- Philippe Chone & Laurent Linnemer, 2010. "A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris," Working Papers 2010-48, Centre de Recherche en Economie et Statistique.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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- Froeb, Luke & Tschantz, Steven & Crooke, Philip, 2003. "Bertrand competition with capacity constraints: mergers among parking lots," Journal of Econometrics, Elsevier, vol. 113(1), pages 49-67, March.
- Borenstein, Severin, 1990. "Airline Mergers, Airport Dominance, and Market Power," American Economic Review, American Economic Association, vol. 80(2), pages 400-404, May.
- L. Aguzzoni & E. Argentesi & L. Ciari & T. Duso & M. Tognoni, 2013.
"Ex-post Merger Evaluation in the UK Retail Market for Books,"
wp889, Dipartimento Scienze Economiche, Universita' di Bologna.
- Luca Aguzzoni & Elena Argentesi & Lorenzo Ciari & Tomaso Duso & Massimo Tognoni, 2013. "Ex-post Merger Evaluation in the UK Retail Market for Books," Discussion Papers of DIW Berlin 1310, DIW Berlin, German Institute for Economic Research.
- Aguzzoni, Luca & Argentesi, Elena & Ciari, Lorenzo & Duso, Tomaso & Tognoni, Massimo, 2013. "Ex-post merger evaluation in the UK retail market for books," DICE Discussion Papers 98, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Gergely Csorba & Gabor Koltay & David Farkas, 2011. "Separating the ex post effects of mergers: an analysis of structural changes on the Hungarian retail gasoline market," IEHAS Discussion Papers 1118, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
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