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Title: Mergers and difference-in-difference estimator : why firms do not increase prices?
Author: Perdiguero, Jordi
Jiménez González, Juan Luis
Keywords: Equilibri (Economia)
Indústria petroliera
Política de preus
Equilibrium (Economics)
Petroleum industry and trade
Prices policy
Issue Date: 2012
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Series/Report no: [WP E-IR12/05]
Abstract: Difference-in-Difference (DiD) methods are being increasingly used to analyze the impact of mergers on pricing and other market equilibrium outcomes. Using evidence from an exogenous merger between two retail gasoline companies in a specific market in Spain, this paper shows how concentration did not lead to a price increase. In fact, the conjectural variation model concludes that the existence of a collusive agreement before and after the merger accounts for this result, rather than the existence of efficient gains. This result may explain empirical evidence reported in the literature according to which mergers between firms do not have significant effects on prices.
Note: Reproducció del document publicat a:
It is part of: IREA – Working Papers, 2012, IR12/05
ISSN: 2014-1254
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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