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Do Mergers Result in Collusion?

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Author Info
Ganslandt, Mattias () (The Research Institute of Industrial Economics)
Norbäck, Pehr-Johan () (The Research Institute of Industrial Economics)

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Abstract

We examine coordinated effects of mergers in the Swedish retail market for gasoline during the period 1986-2002. Despite significant changes in market concentration and many factors conductive to coordination, the empirical analysis shows that the level of coordination is low. In addition, statistical tests reject the hypothesis that mergers and acquisitions result in "coordinated effects". In particular, higher market concentration does not result in more collusive behavior and, consequently, the relevance of simple "checklists" in merger control can be questioned.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 621.

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Length: 34 pages
Date of creation: 14 Jun 2004
Date of revision:
Handle: RePEc:hhs:iuiwop:0621

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: Merger Control; Collusion; Coordinated Effects; Oligopolistic Dominance; Competition Policy;

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Slade, Margaret E, 1998. "Beer and the Tie: Did Divestiture of Brewer-Owned Public Houses Lead to Higher Beer Prices?," Economic Journal, Royal Economic Society, vol. 108(448), pages 565-602, May. [Downloadable!] (restricted)
  2. George Symeonidis, 2003. "In Which Industries is Collusion More Likely? Evidence from the UK," Journal of Industrial Economics, Blackwell Publishing, vol. 51(1), pages 45-74, 03. [Downloadable!] (restricted)
  3. Nevo, Aviv, 2001. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Econometrica, Econometric Society, vol. 69(2), pages 307-42, March.
    Other versions:
  4. Severin Boreinstein & Andrea Shepard, 1996. "Dynamic Pricing in Retail Gasoline Markets," RAND Journal of Economics, The RAND Corporation, vol. 27(3), pages 429-451, Autumn. [Downloadable!] (restricted)
    Other versions:
  5. Bettendorf, L & Verboven, F, 2000. "Incomplete Transmission of Coffee Bean Prices: Evidence from the Netherlands," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 27(1), pages 1-16, March.
  6. Jacquemin, Alexis & Slade, Margaret E., 1989. "Cartels, collusion, and horizontal merger," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 7, pages 415-473 Elsevier. [Downloadable!] (restricted)
  7. Karen Clay & Werner Troesken, 2003. "Further Tests of Static Oligopoly Models: Whiskey, 1882-1898," Journal of Industrial Economics, Blackwell Publishing, vol. 51(2), pages 151-166, 06. [Downloadable!] (restricted)
  8. Compte, Olivier & Jenny, Frederic & Rey, Patrick, 2002. "Capacity constraints, mergers and collusion," European Economic Review, Elsevier, vol. 46(1), pages 1-29, January. [Downloadable!] (restricted)
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