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The Effect of EU Antitrust Investigations and Fines on a Firm’s Valuation

Langus, Gregor; Motta, Massimo - C.E.P.R. Discussion Papers - 2007

We estimate, using event study techniques, the impact of the main events in an antitrust investigation on a firm’s stock market value. A surprise inspection at the firm’s premises has a strong and statistically significant effect on the firm’s share price, with its cumulative average...

Persistent link: https://www.econbiz.de/10005662243

The Economics of Margin Squeeze

Jullien, Bruno; Rey, Patrick; Saavedra, Claudia - C.E.P.R. Discussion Papers - 2014

The paper discusses economic theories of harm for anti-competitive margin squeeze by unregulated and regulated vertically integrated firms. We review both predation and foreclosure theories, as well as the mere exploitation of upstream market power. We show that foreclosure provides an...

Persistent link: https://www.econbiz.de/10011083910

Competition Policy and Productivity Growth: An Empirical Assessment

Buccirossi, Paolo; Ciari, Lorenzo; Duso, Tomaso; … - C.E.P.R. Discussion Papers - 2009

policy related to its institutional set up and antitrust activities (rather than merger control). The effect is strengthened …

Persistent link: https://www.econbiz.de/10008528531

Firms Merge in Response to Constraints

Boone, Jan - C.E.P.R. Discussion Papers - 2006

Theoretical IO models of horizontal mergers and acquisitions make the critical assumption of efficiency gains. Without … efficiency gains, these models predict either that mergers are not profitable or that mergers are welfare reducing. A problem … here is the empirical observation that on average mergers do not create efficiency gains. We analyze mergers in a model …

Persistent link: https://www.econbiz.de/10005789008

Mergers as Auctions

Ivaldi, Marc; Motis, Jrissy - C.E.P.R. Discussion Papers - 2007

structural approach to infer acquirers’ gains from merging by interpreting a merger as an auction. Using nonparametric methods … analysis supports the synergy hypothesis as a motive in horizontal mergers. …

Persistent link: https://www.econbiz.de/10005656211

Exclusive Dealing, Entry and Mergers

Fumagalli, Chiara; Motta, Massimo; Persson, Lars - C.E.P.R. Discussion Papers - 2005

uncovers new effects. First, exclusive deals can be used to improve the incumbent’s bargaining position in the merger … installing new capacity. Third, exclusive dealing reduces welfare because (i) it may trigger entry through merger whereas de novo …

Persistent link: https://www.econbiz.de/10005504295

Predation and Mergers: Is Merger Law Counterproductive?

Persson, Lars - C.E.P.R. Discussion Papers - 2001

This Paper shows that predation might help firms overcome the free riding problem of mergers by changing the … acquisition situation in the buyer's favour relative to the firms outside the merger. It is also shown that the bidding … bidding competition for the prey. It is also shown that a restrictive merger policy might be counterproductive, since it might …

Persistent link: https://www.econbiz.de/10005661959

The Coordinated Effects of Mergers in Differentiated Products Markets

Kühn, Kai-Uwe - C.E.P.R. Discussion Papers - 2004

The Paper addresses the issue of coordinated effects of mergers in the framework of a differentiated products model …. Firms’ assets are product varieties that can be sold individually or entirely transferred to another firm in a merger. We …, mergers are unprofitable unless the length of product lines is very asymmetric. We discuss the implications of the analysis …

Persistent link: https://www.econbiz.de/10005667006

Exclusive Contracts and Market Power: Evidence from Ocean Shipping

Uribe, Marín; Luis, Pedro - C.E.P.R. Discussion Papers - 2001

There is a substantial theoretical literature on the potential effects of loyalty contracts, but a relative paucity of empirical work. This Paper employs the event study methodology to examine the effect of exclusionary contracts on firm performance in the ocean shipping industry. Shipping...

Persistent link: https://www.econbiz.de/10005497855

Industry Concentration and Welfare - On the Use of Stock Market Evidence from Horizontal Mergers

Fridolfsson, Sven-Olof; Stennek, Johan - C.E.P.R. Discussion Papers - 2006

possible reconciliation. It is demonstrated that anticompetitive mergers may reduce competitors' share prices, if the merger …There is diverging empirical evidence on the competitive effects of horizontal mergers: consumer prices (and thus … presumably competitors' profits) often rise while competitors' share prices fall. Our model of endogenous mergers provides a …

Persistent link: https://www.econbiz.de/10005497962