Antitrust & Competition Policy Blog

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

A Member of the Law Professor Blogs Network

Friday, January 7, 2011

A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris

Posted by D. Daniel Sokol

Philippe Chone, National Institute of Statistics and Economic Studies (INSEE) and Laurent Linnemer, National Institute of Statistics and Economic Studies (INSEE) - Laboratory of Industrial Economics explain A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris.

ABSTRACT: Most retrospective merger studies resort to the treatment effect approach, comparing the price dynamics in a treatment group and in a control group. We propose a systematic method to construct the groups, which applies to any industry with spatial competition. The method is consistent with the fact that mergers alter oligopolistic equilibria in complex ways, and thus that seemingly distant entities may be affected through indirect channels. An illustration based on a merger in the Parisian parking market is provided.

http://lawprofessors.typepad.com/antitrustprof_blog/2011/01/a-treatment-effect-method-for-merger-analysis-with-an-application-to-parking-prices-in-paris.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0147e0a15a46970b

Listed below are links to weblogs that reference A Treatment Effect Method for Merger Analysis with an Application to Parking Prices in Paris:

Comments

Post a comment