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Do Mergers Result in Collusion?

Author

Listed:
  • Ganslandt, Mattias

    (The Research Institute of Industrial Economics)

  • Norbäck, Pehr-Johan

    (The Research Institute of Industrial Economics)

Abstract

We 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.

Suggested Citation

  • Ganslandt, Mattias & Norbäck, Pehr-Johan, 2004. "Do Mergers Result in Collusion?," Working Paper Series 621, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0621
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Merger Control; Collusion; Coordinated Effects; Oligopolistic Dominance; Competition Policy;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - 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

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