Tuesday, December 28, 2010
Posted by D. Daniel Sokol
Jung, Hyun-Joon and Nahm, Jae (Department of Economics, Korea University, Seoul, Republic of Korea) explore Evaluating Merger Effects in Cable TV Industry in a Difference in Difference Method.
ABSTRACT: Between 2005 and 2008, there had been active mergers between cable system operators in Korean. By analyzing subscription fees changes between 2004 and 2008 in a panel data set, we evaluate the merger effects. We find that mergers had occurred in relatively low prices areas; the price increase was much higher in areas where merger had occurred than in areas where competition between multiple SO had remained.