Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, November 2, 2007

The Price Effects of Horizontal Mergers

Posted by D. Daniel Sokol

Matthew Weinberg of the University of Georgia Department of Economics provides a useful literature review in his article The Price Effects of Horizontal Mergers

ABSTRACT: This paper surveys the literature on the price effects of horizontal mergers. Most mergers examined in the nine studies conducted over the past 22 years resulted in increased prices for both the merging parties and rival firms, at least in the short run. There is some evidence that product prices increase after mergers are announced, but before they are consummated. Recent evidence from consumer product markets suggests that a stricter merger policy is needed to protect consumer welfare.

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