Experiments on horizontal mergers: Does size matter?

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 3
Pages: 537-539

Authors (3)

Beckman, Steven R. (University of Colorado Denver) DeAngelo, Gregory (not in RePEc) James Smith, W. (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Current Department of Justice merger guidelines assume that merging the capacities of two firms will translate into an equivalent increase in market shares. Size matters. Economic theory asserts size is determined by marginal revenue and marginal cost not capacity. Size does not matter. In this paper we run horizontal merger experiments and find that the firms tend to share monopoly profits regardless of the size of the firms.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:3:p:537-539
Journal Field
General
Author Count
3
Added to Database
2026-01-24