A Large-Scale Analysis of Mergers and Merger Simulations

Project: Research project

Project Details

Description

Antitrust enforcement asks regulators to sift through thousands of proposed deals on a yearly basis, to identify those that may be anticompetitive, and to either block them or propose remedies. This is a difficult task, as it requires trading-off losses due to increased market power with prospective gains due to cost synergies without observing either. Despite the importance of antitrust policy, there is little systematic evidence about what happens after mergers take place or about the effectiveness of the tools used to predict merger effects. We aim to bridge this gap.
The PIs propose two projects to address these issues. The first consists of a systematic evaluation of
the price effects of approved mergers in the United States. We aim to characterize the distribution of price
effects induced by approved mergers and to study what aspects of market structure are correlated with these
measured price changes. To do so, we propose to conduct a retrospective analysis of the price effects of a
large and comprehensive set of mergers, systematically studying all mergers that satisfy certain deal size
restrictions within specific industries. In this proposal, we present results for 95 mergers in the retail industry
and are seeking funding to expand this set further.
StatusActive
Effective start/end date7/15/216/30/24

Funding

  • National Science Foundation (NOT SPECIFIED)

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