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Mergers with Differentiated Products: Where Do We Stand?

Author

Listed:
  • Tommaso Valletti

    (Imperial College Business School, Imperial College London)

  • Hans Zenger

    (European Commission, MADO 17/014)

Abstract

On the occasion of the 10th anniversary of the 2010 U.S. Horizontal Merger Guidelines, this article provides an overview of the state of economic analysis of unilateral effects in mergers with differentiated products. Drawing on our experience with merger enforcement in Europe, we discuss both static and dynamic competition, with a special emphasis on the calibration of competitive effects. We also discuss the role of market shares and structural presumptions in differentiated product markets.

Suggested Citation

  • Tommaso Valletti & Hans Zenger, 2021. "Mergers with Differentiated Products: Where Do We Stand?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(1), pages 179-212, February.
  • Handle: RePEc:kap:revind:v:58:y:2021:i:1:d:10.1007_s11151-021-09810-5
    DOI: 10.1007/s11151-021-09810-5
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    Cited by:

    1. Panhans, Matthew T. & Taragin, Charles, 2023. "Consequences of model choice in predicting horizontal merger effects," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    2. Cosnita-Langlais, Andreea & Johansen, Bjørn Olav & Sørgard, Lars, 2021. "Upward pricing pressure in two-sided markets: Incorporating rebalancing effects," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    3. Liliane Karlinger & Dimitrios Magos & Pierre Régibeau & Hans Zenger, 2020. "Recent Developments at DG Competition: 2019/2020," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(4), pages 783-814, December.
    4. Andreea Cosnita-Langlais & Bjørn Olav Johansen & Lars Sorgard, 2018. "Upward Price Pressure in Two-Sided Markets: Incorporating Feedback Effects," Working Papers hal-04141797, HAL.
    5. Voudon, Benoît, 2022. "Indicative Price Rise with synergies," Economics Letters, Elsevier, vol. 218(C).
    6. Nathan H. Miller & Gloria Sheu, 2021. "Quantitative Methods for Evaluating the Unilateral Effects of Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(1), pages 143-177, February.
    7. Phansatarn, Thunwar & Srinuan, Chalita, 2024. "Analysis of Thailand's fixed broadband internet services demand: A merger screening of AIS and 3BB," Telecommunications Policy, Elsevier, vol. 48(2).
    8. Haucap, Justus & Stiebale, Joel, 2023. "Non-price effects of mergers and acquisitions," DICE Discussion Papers 402, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    9. Bertram Neurohr, 2024. "Demand Elasticities and Volume Effects: Practical Formulas for Practitioners," Journal of Industry, Competition and Trade, Springer, vol. 24(1), pages 1-11, December.

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    More about this item

    Keywords

    Differentiated products; Mergers; Unilateral effects;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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