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The Price Effects of a Large Merger of Manufacturers: A Case Study of Maytag-Whirlpool / Orley C. Ashenfelter, Daniel S. Hosken, Matthew C. Weinberg.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Ashenfelter, Orley, 1942-
Contributor:
Hosken, Daniel.
Weinberg, Matthew, 1978-
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17476.
NBER working paper series no. w17476
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
Many experts speculate that U.S. antitrust policy towards horizontal mergers has been too lenient. We estimate the price effects of Whirlpool's acquisition of Maytag to provide new evidence on this debate. We compare price changes in appliance markets most affected by the merger to markets where concentration changed much less or not at all. We estimate price increases for dishwashers and relatively large price increases for clothes dryers, but no price effects for refrigerators or clothes washers. The combined firm's market share fell across all four affected categories and the number of distinct appliance products fell.
Notes:
October 2011.
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