Code for: Mergers, Entry, and Consumer Welfare
Principal Investigator(s): View help for Principal Investigator(s) Peter Caradonna, California Institute of Technology; Nathan Miller, Georgetown University; Gloria Sheu, Board of Governors of the Federal Reserve System
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| Code | 10/07/2024 09:51:AM | ||
| Results | 06/25/2024 02:31:PM | ||
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application/pdf | 151.7 KB | 10/07/2024 05:53:AM |
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text/plain | 359 bytes | 06/26/2024 05:32:AM |
Project Citation:
Caradonna, Peter, Miller, Nathan, and Sheu, Gloria. Code for: Mergers, Entry, and Consumer Welfare. Nashville, TN: American Economic Association [publisher], 2025. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-07-17. https://doi.org/10.3886/E206681V1
Project Description
Summary:
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We model merger-induced entry in the context of differentiated-products price competition. We fully characterize the combinations of merger efficiencies and entrant qualities that can mitigate the adverse equilibrium welfare effects of an otherwise anticompetitive merger. The possibility of merger-induced entry introduces non-monotonicity into the equilibrium value that consumers receive from merger efficiencies, potentially necessitating the joint analysis of efficiencies and entry in merger review. We also explicitly characterize the efficiencies required for merger-induced entrants to make profitable mergers consumer surplus-neutral. We provide an empirical application to the T-Mobile/Sprint merger.
Scope of Project
Subject Terms:
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mergers;
entry;
merger efficiencies;
antitrust
JEL Classification:
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K21 Antitrust Law
L13 Oligopoly and Other Imperfect Markets
L41 Monopolization; Horizontal Anticompetitive Practices
K21 Antitrust Law
L13 Oligopoly and Other Imperfect Markets
L41 Monopolization; Horizontal Anticompetitive Practices
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