Quotation Grajek, Michal, Gugler, Klaus, Kretschmer, Tobias, Mişcişin, Ion. 2019. Static or Dynamic Efficiency: Horizontal Merger Effects in the Wireless Telecommunications Industry. Review of Industrial Organization. 55 (3), 375-402.




This paper studies five mergers in the European wireless telecommunication industry and analyzes their impact on prices and capital expenditures of both merging carriers and their rivals. We find substantial heterogeneity in the relationship between increases in concentration and carriers’ prices. The specifics of each merger case clearly matter. Moreover, we find a positive correlation between the price and the investment effect; when the prices after a merger increase (decrease), the investments increase (decrease) too. Thus, we document a trade-off between static and dynamic efficiency of mergers.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Review of Industrial Organization
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new VW-D
Language English
Title Static or Dynamic Efficiency: Horizontal Merger Effects in the Wireless Telecommunications Industry
Volume 55
Number 3
Year 2019
Page from 375
Page to 402
Reviewed? Y
URL https://link.springer.com/article/10.1007/s11151-019-09723-4
DOI https://doi.org/10.1007/s11151-019-09723-4
Open Access Y
Open Access Link https://link.springer.com/article/10.1007%2Fs11151-019-09723-4
JEL L22; O33; G34; L96


Gugler, Klaus (Details)
Grajek, Michal (ESMT Berlin, Germany)
Kretschmer, Tobias (Munich School of Management, Ludwig-Maximilians-Universität München, Germany)
Mişcişin, Ion (University of Vienna, Austria)
Research Institute for Regulatory Economics FI (Details)
Department of Economics (Gugler) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5370 Industrial economics (Details)
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