scholarly journals Mergers and Sunk Costs: An Application to the Ready-Mix Concrete Industry

2014 ◽  
Vol 6 (4) ◽  
pp. 407-447 ◽  
Author(s):  
Allan Collard-Wexler
Keyword(s):  
Market Structure ◽  
Sunk Costs ◽  
Large Impact ◽  
Entry Barriers ◽  
Horizontal Mergers ◽  
Using Data ◽  
Lasting Change ◽  
Ready Mix Concrete

Horizontal mergers have a large impact by inducing a long-lasting change in market structure. Only in an industry with substantial entry barriers is a merger not immediately counteracted by post-merger entry. To evaluate the duration of the effects of a merger, I use the model of Abbring and Campbell (2010) to estimate demand thresholds for entry and for exit. These thresholds, along with the process for demand, are estimated using data from the ready-mix concrete industry. Simulations predict that a merger from duopoly to monopoly generates between nine and ten years of monopoly in the market. (JEL G34, K21, L12, L13, L41, L61)

Fixed Costs, Sunk Costs, Entry Barriers, and Sustainability of Monopoly

1981 ◽  
Vol 96 (3) ◽  
pp. 405 ◽  
Author(s):  
William J. Baumol ◽  
Robert D. Willig
Keyword(s):  
Sunk Costs ◽  
Entry Barriers ◽  
Fixed Costs

10. Mergers and acquisitions

2021 ◽  
pp. 106-117
Author(s):  
Ariel Ezrachi
Keyword(s):  
Mergers And Acquisitions ◽  
Market Structure ◽  
Market Power ◽  
Joint Ventures ◽  
Potential Benefit ◽  
Horizontal Mergers ◽  
Administrative System ◽  
The Us ◽  
Vertical Mergers ◽  
The Impact

‘Mergers and acquisitions’ discusses mergers and acquisitions. While of potential benefit to society, mergers, takeovers, share acquisitions, and joint ventures also affect the market structure, and at times may reduce competition. When markets become more concentrated following a merger, we move further away from a competitive market structure to a structure in which market power might undermine the competitive process. To address this risk, the competition agency must assess the impact of the transaction. There are important procedural differences between the European administrative system and the US system in terms of the appraisal of mergers and acquisitions. Other types of mergers include: horizontal mergers, vertical mergers, and conglomerate transactions.

Market Structure and the Pattern of Black-Owned Firms

1988 ◽  
Vol 16 (4) ◽  
pp. 65-76 ◽  
Author(s):  
John S. Heywood
Keyword(s):  
Market Structure ◽  
Strong Evidence ◽  
Black Workers ◽  
Entry Barriers ◽  
Industrial Concentration ◽  
Black Entrepreneurs ◽  
The Relationship

This article discusses the relationship between industrial concentration and the presence of black-owned firms. Strong evidence is found that more monopolistic industries have a smaller black presence. This demonstrates that the monopolistic industries in which black workers are known to face the worst discrimination are also the industries in which blacks face the highest structural entry barriers as entrepreneurs. Indeed, entry barriers may cause the monopolistic conditions which allow discrimination while simultaneously frustrating the entry of black entrepreneurs.

scholarly journals Market Structure, Reputation, and the Value of Quality Certification

2015 ◽  
Vol 7 (4) ◽  
pp. 83-108 ◽  
Author(s):  
Daniel W. Elfenbein ◽  
Raymond Fisman ◽  
Brian McManus
Keyword(s):  
Market Structure ◽  
Product Space ◽  
Past Performance ◽  
High Quality ◽  
Positive Effects ◽  
On Demand ◽  
Certification Programs ◽  
Online Marketplace ◽  
Quality Certification ◽  
Using Data

Quality certification programs help consumers identify high-quality products or sellers in markets with information asymmetries. Using data from eBay UK's online marketplace, we study how certification's impact on demand varies with market- and seller-level attributes, exploiting variation in sellers' certification status within groups of near-identical listings. The positive effects of eBay's “top rated seller” certification are stronger for categories with few other certified sellers, in more competitive markets, and for sellers with shorter records of past performance. These findings indicate certification provides more value when certification is rare, the product space is crowded, and for sellers lacking established reputations. (JEL D12, D82, L15, L86)

Sunk Costs and Market Structure: A Review Article

1992 ◽  
Vol 40 (2) ◽  
pp. 125 ◽  
Author(s):  
Richard Schmalensee
Keyword(s):  
Market Structure ◽  
Review Article ◽  
Sunk Costs
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