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Merger Policy at the Margin: Western Refining’s Acquisition of Giant Industries

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  • Nicholas Kreisle

Abstract

In May 2007, a United States District Court declined to grant the Federal Trade Commission a preliminary injunction that would have blocked the merger of two petroleum refiners that served Albuquerque, New Mexico, and surrounding areas. This study compares estimates of the post-merger price effect to the price effects that were predicted by economic experts on both sides of the case. I find little scope to interpret the evidence as consistent with an anticompetitive post-merger price effect. I also highlight the difficulties that are involved in econometrically identifying small effects even with an abundance of pricing data. Copyright Springer Science+Business Media New York (outside the USA) 2015

Suggested Citation

  • Nicholas Kreisle, 2015. "Merger Policy at the Margin: Western Refining’s Acquisition of Giant Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(1), pages 71-89, August.
  • Handle: RePEc:kap:revind:v:47:y:2015:i:1:p:71-89
    DOI: 10.1007/s11151-015-9463-2
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    References listed on IDEAS

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    1. Daniel Hosken & Louis Silvia & Christopher Taylor, 2011. "Does Concentration Matter? Measurement of Petroleum Merger Price Effects," American Economic Review, American Economic Association, vol. 101(3), pages 45-50, May.
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    8. John Simpson & Christopher Taylor, 2008. "Do Gasoline Mergers Affect Consumer Prices? The Marathon Ashland Petroleum and Ultramar Diamond Shamrock Transaction," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 135-152, February.
    9. Orley Ashenfelter & Daniel Hosken & Matthew Weinberg, 2009. "Generating Evidence to Guide Merger Enforcement," CPI Journal, Competition Policy International, vol. 5.
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