Merger control in differentiated product industries

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dc.contributor.author Mariuzzo, Franco
dc.contributor.author Walsh, Patrick P.
dc.contributor.author Whelan, Ciara
dc.date.accessioned 2009-03-10T15:28:49Z
dc.date.available 2009-03-10T15:28:49Z
dc.date.copyright UCD School of Economics 2005 en
dc.date.issued 2005-05
dc.identifier.uri http://hdl.handle.net/10197/948
dc.description.abstract Thresholds defined on the level and change in the HHI (Herfindahl-Hirschmann Index) applied to market shares seem to be the main instrument to select notified mergers for investigation in both the EU and US. We question the use of such a selection rule in differentiated products industries. We propose the use of a structural approach to apply HHI thresholds based on profit shares rather than market shares. We illustrate our point using product data for Retail Carbonated Soft Drinks (Price, Market Share and Characteristics). We estimate company (product) mark-ups consistent with a structural model of equilibrium, using demand primitives from a Nested Logit model and a Random Coefficient model. We provide an example where the HHI thresholds based on profit shares identify potentially damaging mergers not captured by applying thresholds to output shares, or conversely, identify mergers of no concern that would be selected on the basis of output shares. en
dc.format.extent 409611 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP05/08 en
dc.relation.uri Merger control in differentiated product industries (2006) en
dc.relation.uri http://hdl.handle.net/10197/137 en
dc.subject Market Shares en
dc.subject Market power en
dc.subject Differentiated products industries en
dc.subject Merger screening en
dc.subject.classification K2 en
dc.subject.classification L11 en
dc.subject.classification L25 en
dc.subject.classification L40 en
dc.subject.classification L81 en
dc.subject.lcsh Consolidation and merger of corporations en
dc.subject.lcsh Product differentiation en
dc.subject.lcsh Market share en
dc.title Merger control in differentiated product industries en
dc.type Working Paper en
dc.internal.authorurl Patrick P. Walsh (web page) en
dc.internal.authorurl http://www.ucd.ie/research/people/politicsintrelations/professorpatrickpaulwalsh/ en
dc.internal.authorurl Ciara Whelan (web page) en
dc.internal.authorurl http://www.ucd.ie/research/people/economics/drciarawhelan/ en
dc.internal.authorid UCD0027 en
dc.internal.authorid UCD0025 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://www.ucd.ie/economics/research/papers/2005/WP05.08.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Mariuzzo|Franco|aut|
dc.neeo.contributor Walsh|Patrick P.|aut|UCD0027
dc.neeo.contributor Whelan|Ciara|aut|UCD0025


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