They played the merger game: A retrospective analysis in the UK videogames market
We study the effect of a merger in a dynamic high-technology industry - the videogame market - which is characterized by frequent introduction of new products. To assess the impact of the merger between two large specialist retailers in the UK, we perform a difference-in-differences analysis comparing the price evolution of the merging parties to that of their 7 major competitors on an original sample of 196 videogames belonging to six different consoles. The results of our econometric analyses suggest that there has been a reduction in the general level of prices of both new and pre-owned games after the merger. This decline has been more marked for the merging parties, which suggests that the merger between Game and Gamestation did not lead to a substantial lessening of competition; rather it is consistent with the existence of efficiency gains.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 211 81-15494
Fax: +49 211 81-15499
Web page: http://www.dice.hhu.de/en.html
More information through EDIRC
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.:
- Gil, Ricard & Warzynski, Frederic, 2009.
"Vertical Integration, Exclusivity and Game Sales Performance in the U.S. Video Game Industry,"
09-19, University of Aarhus, Aarhus School of Business, Department of Economics.
- Gil, Ricard & Warzynski, Frédéric, 2009. "Vertical Integration, Exclusivity and Game Sales Performance in the U.S. Video Game Industry," MPRA Paper 21049, University Library of Munich, Germany, revised Dec 2009.
- Ricard Gil & Frédèric Warzynski, 2010. "Vertical Integration, Exclusivity and Game Sales Performance in the US Video Game Industry," Working Papers 10-06, NET Institute, revised Sep 2010.
- Matthew Weinberg, 2007. "The Price Effects of Horizontal Mergers: A Survey," Working Papers 62, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Matthew T. Clements & Hiroshi Ohashi, 2004.
"Indirect Network Effects and the Product Cycle: Video Games in the U.S., 1994-2002,"
CIRJE-F-261, CIRJE, Faculty of Economics, University of Tokyo.
- Matthew T. Clements & Hiroshi Ohashi, 2004. "Indirect Network Effects and the Product Cycle: Video Games in the U.S., 1994-2002," Working Papers 04-01, NET Institute, revised Oct 2004.
- Raymond Deneckere & Carl Davidson, 1985. "Incentives to Form Coalitions with Bertrand Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 473-486, Winter.
- Nair, Harikesh, S., 2006.
"Intertemporal Price Discrimination with Forward-Looking Consumers: Application to the US Market for Console Video-Games,"
1947, Stanford University, Graduate School of Business.
- Harikesh Nair, 2007. "Intertemporal price discrimination with forward-looking consumers: Application to the US market for console video-games," Quantitative Marketing and Economics, Springer, vol. 5(3), pages 239-292, September.
- Corts, Kenneth S. & Lederman, Mara, 2009. "Software exclusivity and the scope of indirect network effects in the U.S. home video game market," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 121-136, March.
- 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.
- L. Aguzzoni & E. Argentesi & L. Ciari & T. Duso & M. Tognoni, 2013. "Ex-post Merger Evaluation in the UK Retail Market for Books," Working Papers wp889, Dipartimento Scienze Economiche, Universita' di Bologna.
- 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).
- Duso, Tomaso & Argentesi, Elena & Aguzzoni, Luca & Ciari, Lorenzo & Tognoni, Massimo, 2013. "Ex-post Merger Evaluation in the UK Retail Market for Books," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80025, Verein für Socialpolitik / German Economic Association.
- Orley C. Ashenfelter & Daniel S. Hosken & Matthew C. Weinberg, 2011.
"The Price Effects of a Large Merger of Manufacturers: A Case Study of Maytag-Whirlpool,"
NBER Working Papers
17476, National Bureau of Economic Research, Inc.
- Orley C. Ashenfelter & Daniel S. Hosken & Matthew C. Weinberg, 2013. "The Price Effects of a Large Merger of Manufacturers: A Case Study of Maytag-Whirlpool," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 239-61, February.
- Dario Focarelli & Fabio Panetta, 2003. "Are Mergers Beneficial to Consumers? Evidence from the Market for Bank Deposits," American Economic Review, American Economic Association, vol. 93(4), pages 1152-1172, September.
- Aviv Nevo & Michael D. Whinston, 2010. "Taking the Dogma out of Econometrics: Structural Modeling and Credible Inference," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 69-82, Spring.
- Ariel Pakes, 2002.
"A Reconsideration of Hedonic Price Indices with an Application to PC's,"
NBER Working Papers
8715, National Bureau of Economic Research, Inc.
- Ariel Pakes, 2003. "A Reconsideration of Hedonic Price Indexes with an Application to PC's," American Economic Review, American Economic Association, vol. 93(5), pages 1578-1596, December.
- repec:rje:randje:v:37:y:2006:3:p:720-737 is not listed on IDEAS
- Mark J. McCabe, 2002. "Journal Pricing and Mergers: A Portfolio Approach," American Economic Review, American Economic Association, vol. 92(1), pages 259-269, March.
When requesting a correction, please mention this item's handle: RePEc:zbw:dicedp:113. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.