Do Mergers Result in Collusion?
AbstractWe 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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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 621.
Length: 34 pages
Date of creation: 14 Jun 2004
Date of revision:
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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
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-06-22 (Accounting & Auditing)
- NEP-ALL-2004-06-22 (All new papers)
- NEP-COM-2004-06-22 (Industrial Competition)
- NEP-IND-2004-06-22 (Industrial Organization)
- NEP-MIC-2004-06-22 (Microeconomics)
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