Merger externalities in oligopolistic markets

Gugler, Klaus and Szücs, Florian (2016) Merger externalities in oligopolistic markets. International Journal of Industrial Organization, 47. pp. 230-254. ISSN 0167-7187


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We evaluate the external effects of 183 large mergers at the market level by assessing the impact on the main competitors of the merging firms. Using synthetic control groups and difference in difference estimation, we find that the return on assets of rival firms increases significantly after a merger. The size of the effect varies strongly with market characteristics and the intensity of competition.

Item Type: Article
Additional Information: The authors would like to thank Tomaso Duso, Robert Feinberg and the participants of RNIC 2012 (Vienna) and IIOC 2013 (Boston) for helpful comments.
Keywords: mergers / spillovers / rivals / synthetic controls
Classification Codes: JEL L13, L40, G34
Divisions: Departments > Volkswirtschaft
Departments > Volkswirtschaft > Quantitative Volkswirtschaftslehre
Version of the Document: Accepted for Publication
Variance from Published Version: Typographical
Depositing User: Elena Simukovic
Date Deposited: 05 Sep 2017 17:05
Last Modified: 13 Aug 2020 04:23
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