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Post Merger Price Conduct: A Case Study of Pricing in Connecticut Markets After the 1996 Royal Ahold-Stop & Shop Merger

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Listed:
  • Ronald W. Cotterill
  • Tirtha Pratim Dhar
  • Andrew W. Franklin

Abstract

This study was provided to the staff at the Federal Trade Commission in October, 1999. It expands the analysis of divestitures that was presented in an April 1999 report to the FTC (An Antitrust Economic Analysis of the Proposed Acquisition of Supermarkets General Holdings Corporation by Ahold Acquisition Inc., Food Marketing Policy Center Research Report No. 46). The earlier study focused on market share changes in divested markets. This study examines price conduct. In December 1999, Royal Ahold withdrew its tender offer citing a new and tougher level of enforcement by the Federal Trade Commission. Piecemeal divestitures that sought to preserve competition in local market areas are now recognized as inadequate. The momentum of acquirers in local markets and concerns for buying power disparities that disadvantage "smaller" chains, as well as food manufacturers and farmers, now clearly seem to be on the antitrust agenda.

Suggested Citation

  • Ronald W. Cotterill & Tirtha Pratim Dhar & Andrew W. Franklin, 1999. "Post Merger Price Conduct: A Case Study of Pricing in Connecticut Markets After the 1996 Royal Ahold-Stop & Shop Merger," Food Marketing Policy Center Research Reports 047, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:zwi:fpcrep:047
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    File URL: http://fmpc.uconn.edu/publications/rr/rr47.pdf
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    References listed on IDEAS

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    1. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-552, September.
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    Cited by:

    1. Ronald W. Cotterill, 2002. "Comments on the Food Marketing Institutes’ Submission to the FTC Titled “Supermarket Merger Investigations and Remedies”," Issue Papers 27, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    2. Ronald W. Cotterill, 2007. "Market Definition and Market Power in the British Supermarket Industry," Food Marketing Policy Center Research Reports 098, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    3. Dhar, Tirtha & Chavas, Jean-Paul & Gould, Brian W., 2002. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," Working Papers 201561, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    4. Ronald W. Cotterill, 2002. "An Antitrust Economic Analysis of Stop & Shop's Proposed Acquisition of the Big V Shop Rite Supermarket Chain," Food Marketing Policy Center Research Reports 063, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    5. Tenn, Steven & Yun, John M., 2011. "The success of divestitures in merger enforcement: Evidence from the J&J-Pfizer transaction," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 273-282, March.
    6. Cotterill, Ronald W., 2000. "Dynamic Explanations of Industry Structure and Performance," Research Reports 25224, University of Connecticut, Food Marketing Policy Center.
    7. Brown, David P. & Eckert, Andrew & Shaffer, Blake, 2023. "Evaluating the impact of divestitures on competition: Evidence from Alberta’s wholesale electricity market," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    8. Dhar, Tirtha Pratim & Chavas, Jean-Paul & Cotterill, Ronald W., 2003. "An Economic Analysis of Product Differentiation under Latent Separability," 2003 Annual meeting, July 27-30, Montreal, Canada 21892, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Cotterill, Ronald & Andrew, Franklin, 2001. "A PowerPoint® Deconstruction of the Farm and Retail Price Analysis Presented in "The Public Interest and Private Economic Power: A Case study of the Northeast Dairy Compact"," Issue Papers 169378, University of Connecticut, Food Marketing Policy Center.
    10. Steve Wood, 2001. "Regulatory Constrained Portfolio Restructuring: The US Department Store Industry in the 1990s," Environment and Planning A, , vol. 33(7), pages 1279-1304, July.
    11. Cotterill, Ronald, 2002. "Comments on the Food Marketing Institutes’ Submission to the FTC Titled “Supermarket Merger Investigations and Remedies”," Issue Papers 169384, University of Connecticut, Food Marketing Policy Center.

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