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What can be Expected from Mergers After Deregulation? The Case of the Long-Distance Bus Industry in France

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Listed:
  • Thierry Blayac

    (CEE-M
    Faculté d’économie)

  • Patrice Bougette

    (CNRS, GREDEG)

Abstract

This study estimates the competitive effects of horizontal mergers in the French long-distance bus industry. We examine the two mergers that followed the 2015 Deregulation Act (the Macron Law); we use an exclusive and exhaustive dataset that covers eight consecutive quarters. We analyze the merger effects by comparing bus links that were affected by mergers with those that were unaffected; we use difference-in-differences estimations. We find that the two mergers are associated with price increases of about 13.5% immediately that then moderate to 5.3%; and with the frequency decreases from − 21.5 to − 25.7%; we observe no effects on load factors. These findings show evidence of short-run anticompetitive effects, while the mergers under study were not scrutinized by the French competition agency, as they were below the notification thresholds.

Suggested Citation

  • Thierry Blayac & Patrice Bougette, 2023. "What can be Expected from Mergers After Deregulation? The Case of the Long-Distance Bus Industry in France," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 62(1), pages 63-97, February.
    • Handle: RePEc:kap:revind:v:62:y:2023:i:1:d:10.1007_s11151-022-09878-7
    DOI: 10.1007/s11151-022-09878-7
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    Cited by:

    1. Patrice Bougette & Frédéric Marty, 2024. "Transport and Competition Law," Working Papers halshs-04763179, HAL.
    2. Blayac, Thierry & Bougette, Patrice & Laroche, Florent, 2024. "An analysis of intermodal competition and multiproduct Incumbent's strategies in the French market: What drive high-speed trains' prices and frequencies?," Transport Policy, Elsevier, vol. 156(C), pages 25-42.
    3. Blayac, Thierry & Bougette, Patrice & Laroche, Florent, 2024. "An analysis of intermodal competition and multiproduct Incumbent's strategies in the French market: What drive high-speed trains' prices and frequencies?," Transport Policy, Elsevier, vol. 156(C), pages 25-42.

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    More about this item

    Keywords

    Long-distance bus industry; Mergers and acquisitions; Deregulated industry; Consolidation; Intramodal competition; Difference-in-differences estimation;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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