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