Why Event Studies Do Not Detect Anti-Competitive Mergers.

Anticompetitive mergers increase competitors' profits, since they reduce competition. Using a model of endogenous mergers, we show that such mergers nevertheless may reduce the competitors' share-prices. Thus, event-studies can not detect anti-competitive mergers.

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Year of publication:	2000
Authors:	Fridolfsson, S.-O. ; Stennek, J.
Institutions:	Institutet för Näringslivsforskning (IFN)
Subject:	ACQUISITIONS \| MERGERS \| COMPETITION

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Series:	Research Institute of Industrial Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	8 pages
Classification:	L41 - Monopolization; Horizontal Anticompetitive Practices ; L12 - Monopoly; Monopolization Strategies ; G14 - Information and Market Efficiency; Event Studies ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005639320