sh.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Does merger simulation work?: Evidence from the swedish analgesics market
KU Leuven, Leuven, Belgium.
KU Leuven, Leuven, Belgium.
2016 (English)In: American Economic Journal: Applied Economics, ISSN 1945-7782, E-ISSN 1945-7790, Vol. 8, no 3, 125-164 p.Article in journal (Refereed) Published
Resource type
Text
Abstract [en]

We analyze a large merger in the Swedish market for analgesics (painkillers). The merging firms raised prices by 40 percent, and some outsiders raised prices by more than 10 percent. We confront these changes with predictions from a merger simulation model. With basic supply side assumptions, the models correctly or moderately underpredict the merging firms' price increase. However, they predict a larger price increase for the smaller firm, which was not the case in practice, and they underpredict the outsiders' responses. We consider several supply side explanations: a plausible cost increase after the merger and the possibility of partial collusion.

Place, publisher, year, edition, pages
2016. Vol. 8, no 3, 125-164 p.
National Category
Economics
Identifiers
URN: urn:nbn:se:sh:diva-30646DOI: 10.1257/app.20130034ISI: 000378819200005Scopus ID: 2-s2.0-84977568968OAI: oai:DiVA.org:sh-30646DiVA: diva2:949486
Available from: 2016-07-20 Created: 2016-07-19 Last updated: 2016-07-22Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Björnerstedt, Jonas
In the same journal
American Economic Journal: Applied Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

Altmetric score

Total: 111 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf