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Mergers and Economies of Scale: Volkswagen AG 1976 - 2000

Author

Listed:
  • Rudholm, Niklas

    (The Swedish Retail Institute (HUI))

Abstract

The purpose of this paper is to study if the acquisitions of the SEAT and Skoda has lead to increased economic efficiency for Volkswagen AG due to economies of scale. This is achieved by estimation of the VAG cost function, using a translog specification. The results indicate that the merger with SEAT did increase the economies of scale available as production volumes increased due to the merger. No such effects was, however, found for the aquisition of Skoda.

Suggested Citation

  • Rudholm, Niklas, 2006. "Mergers and Economies of Scale: Volkswagen AG 1976 - 2000," HUI Working Papers 4, HUI Research.
    • Handle: RePEc:hhs:huiwps:0004
    as

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    References listed on IDEAS

    as
    1. Lila Truett & Dale Truett, 2001. "The Spanish automotive industry: scale economies and input relationships," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1503-1513.
    2. Fuss,Melvyn A. & Waverman,Leonard, 2006. "Costs and Productivity in Automobile Production," Cambridge Books, Cambridge University Press, number 9780521031752, November.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, November.
    4. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-676, August.
    5. V. Eldon Ball & Robert G. Chambers, 1982. "An Economic Analysis of Technology in the Meat Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 699-709.
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    Cited by:

    1. Christos Genakos & Andreas Lamprinidis & James Walker, 2023. "Evaluating merger effects," CEP Discussion Papers dp1921, Centre for Economic Performance, LSE.

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    More about this item

    Keywords

    Automobile production; economies of scale; technological change;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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