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Replication data for: Does Merger Simulation Work? Evidence from the Swedish Analgesics Market

Version
1
Resource Type
Dataset
Creator
  • Björnerstedt, Jonas
  • Verboven, Frank
Publication Date
2016-07-01
Description
  • Abstract

    We analyze a large merger in the Swedish market for analgesics (painkillers). The merging firms raised prices by 40 percent, and some outsiders raised prices by more than 10 percent. We confront these changes with predictions from a merger simulation model. With basic supply side assumptions, the models correctly or moderately underpredict the merging firms' price increase. However, they predict a larger price increase for the smaller firm, which was not the case in practice, and they underpredict the outsiders' responses. We consider several supply side explanations: a plausible cost increase after the merger and the possibility of partial collusion.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/app.20130034 (Text)
Publications
  • Björnerstedt, Jonas, and Frank Verboven. “Does Merger Simulation Work? Evidence from the Swedish Analgesics Market.” American Economic Journal: Applied Economics 8, no. 3 (July 2016): 125–64. https://doi.org/10.1257/app.20130034.
    • ID: 10.1257/app.20130034 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Björnerstedt, Jonas; Verboven, Frank (2016): Replication data for: Does Merger Simulation Work? Evidence from the Swedish Analgesics Market. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E113581V1