Merger externalities in oligopolistic markets

Publication: Scientific journalJournal articlepeer-review

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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.
Original languageEnglish
Pages (from-to)230 - 254
JournalInternational Journal of Industrial Organization
Publication statusPublished - 2016

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