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Measuring unilateral effects in partial horizontal acquisitions

Author

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  • Brito, Duarte
  • Ribeiro, Ricardo
  • Vasconcelos, Helder

Abstract

Recent years have witnessed an increased interest, by competition agencies, in assessing the competitive effects of partial acquisitions. We propose an empirical structural methodology to examine quantitatively the unilateral impact of partial horizontal acquisitions. The acquisitions may be direct or indirect, and may or may not correspond to control. The proposed methodology simulates the effects on prices, market shares, firm profits and consumer welfare. It can deal with differentiated product industries and nest full mergers as a special case. We provide an empirical application to several acquisitions in the wet shaving industry.

Suggested Citation

  • Brito, Duarte & Ribeiro, Ricardo & Vasconcelos, Helder, 2014. "Measuring unilateral effects in partial horizontal acquisitions," International Journal of Industrial Organization, Elsevier, vol. 33(C), pages 22-36.
  • Handle: RePEc:eee:indorg:v:33:y:2014:i:c:p:22-36
    DOI: 10.1016/j.ijindorg.2013.12.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Duarte Brito & António Osório & Ricardo Ribeiro & Hélder Vasconcelos, 2015. "Unilateral Effects Screens for Partial Horizontal Acquisitions: The Generalized HHI and GUPPI," Working Papers de Economia (Economics Working Papers) 02, Católica Porto Business School, Universidade Católica Portuguesa.
    2. Torben Stühmeier, 2016. "Competition and Corporate Control in Partial Ownership Acquisitions," Journal of Industry, Competition and Trade, Springer, vol. 16(3), pages 297-308, September.
    3. Brito, Duarte & Ribeiro, Ricardo & Vasconcelos, Helder, 2013. "Quantifying the Coordinated Effects of Partial Horizontal Acquisitions," CEPR Discussion Papers 9536, C.E.P.R. Discussion Papers.
    4. Melisa Newham & Jo Seldeslachts & Albert Banal-Estañol, 2018. "Common ownership and market entry: Evidence from the pharmaceutical industry," Economics Working Papers 1612, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Martin C. Schmalz, 2018. "Common-Ownership Concentration and Corporate Conduct," CESifo Working Paper Series 6908, CESifo Group Munich.
    6. repec:bpj:ajlecn:v:7:y:2016:i:3:p:343-367:n:1 is not listed on IDEAS
    7. Melissa Newham & Jo Seldeslachts & Albert Banal-Estanol, 2018. "Common Ownership and Market Entry: Evidence from Pharmaceutical Industry," Discussion Papers of DIW Berlin 1738, DIW Berlin, German Institute for Economic Research.
    8. Melissa Newham & Jo Seldeslachts & Albert Banal-Estañol, 2018. "Common Ownership and Market Entry: Evidence from the Pharmaceutical Industry," Working Papers 1042, Barcelona Graduate School of Economics.
    9. repec:spr:epolin:v:44:y:2017:i:3:d:10.1007_s40812-016-0053-6 is not listed on IDEAS
    10. Heim, Sven & Hüschelrath, Kai & Laitenberger, Ulrich & Spiegel, Yossi, 2017. "Minority share acquisitions and collusion: Evidence from the introduction of national leniency programs," ZEW Discussion Papers 17-037, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    Antitrust; Unilateral effects; Partial acquisitions; Oligopoly; Differentiated products; Demand estimation;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • 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
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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