| By: |
Orley Ashenfelter (Princeton University);
Daniel Hosken (Federal Trade Commission) |
| Abstract: |
In this paper we propose a method to evaluate the effectiveness of U.S.
horizontal merger policy and apply it to the study of five recent consumer
product mergers. We selected the mergers from those that, from the public
record, seemed to be most problematic for the antitrust agencies. Thus we
estimate an upper bound on the likely price effect of completed mergers. Our
study employs retail scanner data and uses familiar panel data program
evaluation procedures to measure price changes. Our results indicate that four
of the five mergers resulted in some increases in consumer prices, while the
fifth merger had little effect. |
| Keywords: |
Horizontal Mergers, Merger Retrospectives, Antitrust, Consumer Products, Program Evaluation |
| JEL: |
L1 L41 L66 L71 L73 |
| Date: |
2008–02 |
| URL: |
http://d.repec.org/n?u=RePEc:pri:cepsud:1037&r=ind |