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Does the presence of a public firm facilitate merger approvals?

Author

Listed:
  • Kanjilal, Kiriti
  • Espinola-Arredondo, Ana
  • Munoz-Garcia, Felix

Abstract

We study mergers between two or more private firms operating in mixed oligopolies, where we allow for the merger to produce cost-reduction effects. We identify that the presence of public firms can facilitate the approval of welfare-improving mergers, even when their cost-reducing effect is relatively low.

Suggested Citation

  • Kanjilal, Kiriti & Espinola-Arredondo, Ana & Munoz-Garcia, Felix, 2022. "Does the presence of a public firm facilitate merger approvals?," Economics Letters, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:ecolet:v:219:y:2022:i:c:s0165176522003160
    DOI: 10.1016/j.econlet.2022.110841
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    References listed on IDEAS

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    1. Yan, Jia & Fu, Xiaowen & Oum, Tae Hoon & Wang, Kun, 2019. "Airline horizontal mergers and productivity: Empirical evidence from a quasi-natural experiment in China," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 358-376.
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    More about this item

    Keywords

    Mergers; Cost-reduction effects; Public firm;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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