Mergers with differentiated products: the case of the ready-to-eat cereal industry

被引:311
作者
Nevo, A [1 ]
机构
[1] Univ Calif Berkeley, Berkeley, CA 94720 USA
[2] NBER, Cambridge, MA 02138 USA
关键词
D O I
10.2307/2600994
中图分类号
F [经济];
学科分类号
02 ;
摘要
Traditional merger analysis is difficult to implement when evaluating mergers in industries with differentiated products. I discuss an alternative, which consists of demand estimation and the use of a model of postmerger conduct to simulate the competitive effects of a merger. I estimate a brand-level demand system for ready-to-eat cereal using supermarket scanner data and use the estimates to (1) recover marginal costs, (2) simulate postmerger price equilibria, and (3) compute welfare effects, under a variety of assumptions. The methodology is applied to Jive mergers, two of which occurred and for which I compare predicted to actual outcomes.
引用
收藏
页码:395 / 421
页数:27
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