Replication data for: Mergers and Sunk Costs: An Application to the Ready-Mix Concrete Industry

Principal Investigator(s): View help for Principal Investigator(s) Allan Collard-Wexler

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Mergers_Sunk_Costs_AEJ_Replication			10/12/2019 11:53:PM
LICENSE.txt	text/plain	14.6 KB	10/12/2019 07:53:PM

Project Citation:

Collard-Wexler, Allan. Replication data for: Mergers and Sunk Costs: An Application to the Ready-Mix Concrete Industry. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114426V1

Project Description

Summary: Horizontal mergers have a large impact by inducing a long-lasting change in market structure. Only in an industry with substantial entry barriers is a merger not immediately counteracted by post-merger entry. To evaluate the duration of the effects of a merger, I use the model of Abbring and Campbell (2010) to estimate demand thresholds for entry and for exit. These thresholds, along with the process for demand, are estimated using data from the ready-mix concrete industry. Simulations predict that a merger from duopoly to monopoly generates between 9 and 10 years of monopoly in the market.

Scope of Project

JEL Classification:
      G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
      K21 Antitrust Law
      L12 Monopoly; Monopolization Strategies
      L13 Oligopoly and Other Imperfect Markets
      L41 Monopolization; Horizontal Anticompetitive Practices
      L61 Metals and Metal Products; Cement; Glass; Ceramics

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Published Versions

V1 [2019-10-12]

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