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α: calibrated so average coauthorship-adjusted count equals average raw count
This paper analyzes the effects of a merger between a German supermarket chain and a soft discounter on consumer prices. We exploit geographic price variation within retail chains and brands and use a difference‐in‐differences estimator to compare regional markets with changes in market structure to unaffected markets. Our results indicate that both insiders and outsiders raised average prices after the merger, particularly in regions with high expected changes in retail concentration. In contrast, we estimate price declines in regions that did not experience a rise in concentration but were potentially affected by cost savings within the merged entity.