We provide evidence that market concentration (HHI) based bank antitrust review can be improved by incorporating a determinant of substitutability between merging banks—the proximity of their branch networks. Using difference-in-differences to estimate the effects of bank mergers, we find that...

How far should an industry be allowed to consolidate when competition and innovation are endogenous? We develop a stochastically alternating-move game of dynamic oligopoly, and estimate it using data from the hard disk drive industry, in which a dozen global players consolidated into only three...

As firms often acquire incumbents to enter new markets, the presence of desirable targets affects entry and merger decisions simultaneously. We study these decisions jointly by estimating a two-sided matching model with externalities using data on commercial banks to investigate the effect of...