Horizontal Mergers Without Synergies May Increase Consumer

THE RESEARCH INSTITUTE OF INDUSTRIAL ECONOMICS
Working Paper No. 558, 2001
Horizontal Mergers Without Synergies May Increase
Consumer Welfare
by Johan Stennek
IUI, The Research Institute of Industrial Economics
P.O. Box 5501
SE-114 85 Stockholm
Sweden
OLh3L?|@* ih}iht `|L| 5)?ih}it
@) W?Uhi@ti L?t4ih `i*u@hi
aL@? 5|i??i!
WNW @?_ ,+
a?i ec 2ff
Devwudfw
Pdunhwv zlwk lpshuihfw frpshwlwlrq gr qrw lqgxfh d frvw0plqlpl}lqj
doorfdwlrq ri surgxfwlrq ehwzhhq upv1 Wkh pdunhw*v delolw| wr udwlrqdol}h
surgxfwlrq lv hyhq pruh olplwhg li frvwv duh sulydwh lqirupdwlrq wr upv1
Phujhuv lq vxfk pdunhwv jhqhudwh dq hflhqf| jdlq dvvrfldwhg zlwk wkh
srrolqj ri lqirupdwlrq1 Qrw rqo| pd| frvwv eh uhgxfhg/ wkh sulfh ohyho dqg
sulfh yduldelolw| pd| dovr ghfolqh dqg frqvxphuv pd| wkxv jdlq1
Nh|zrugv= krul}rqwdo phujhu/ zhoiduh/ dv|pphwulf lqirupdwlrq
MHO= O43/ J67/ G76/ G;5
L dp judwhixo wr Hulf ydq Gdpph/ Khquln Kruq/ Kdudog Odqj/ Oduv Shuvvrq dqg Iudqn
Yhueryhq/ iru khosixo glvfxvvlrqv1 L dovr wkdqn vhplqdu sduwlflsdqwv dw wkh Lqvwlwxwh iru Lqwhu0
qdwlrqdo Hfrqrplf Vwxglhv +Vwrfnkrop,/ Hfrqrphwulf Vrflhw| Hxurshdq Phhwlqj +Lvwdpexo,/
Hxurshdq Hfrqrplf Dvvrfldwlrq Dqxdo Phhwlqj +Lvwdpexo,/ dqg Hxurshdq Dvvrfldwlrq iru Uh0
vhdufk lq Lqgxvwuldo Hfrqrplfv +Ylhqqd,1 L*p judwhixo wr Fkulvwlqd O
rqqeodg iru fruuhfwlqj
wkh odqjxdjh1 L wkdqn Mdq Zdoodqghu rfk Wrp Khgholxv Irxqgdwlrq iru qdqfldo vxssruw1
Srvwdo dgguhvv= Uhvhdufk Lqvwlwxwh iru Lqgxvwuldo Hfrqrplfv +LXL,/ S1R1 Er{ 8834/ VH0447 ;8
Vwrfnkrp/ Vzhghq1

W?|hL_U|L?
At T@Tih t|_it |i i*u@hi igiU|t Lu Lh3L?|@* 4ih}iht ? @ Lh?L| _LTL*)
W? T@h|U*@hc W uLUt L? |i igiU| Lu @ 4ih}ih L? UL?t4ih i*u@hi |hL} |t
4T@U| L? ThUi W? }i?ih@*c |ihi t @ |i?tL? Mi|ii? |i @?|UL4Ti||i igiU|t
Lu @ 4ih}ih @?_ iUi?U) }@?t 6Lh i @4T*ic @ 4L?LTL*t| U@? h@|L?@*3i ThL
_U|L?c i hi@**LU@|i ThL_U|L? uhL4 }ULt| |L *LULt| T*@?|t OLiihc
6@hhi** @?_ 5@ThL Ebbf _i4L?t|h@|i |@| u @ 4ih}ih }i?ih@|it ?L t)?ih}itc
_i?i_ @t ULt| t@?}t ? @__|L? |L h@|L?@*3@|L?c | @*@)t h@tit ThUi @?_
hi_Uit UL?t4ih i*u@hi *|L} 6@hhi** @?_ 5@ThL UL?t_ih @ 4L_i* |
i_ ULt|tc |ih hit*| t i@t*) }i?ih@*3i_ |L ?U*_i ULt| @h@M*|) @t *L?}
@t ?uLh4@|L? t UL4T*i|i 5?Ui |i ThUi EUL?t4ih |*|) @u|ih @ 4ih}ih t
}ih E*Lih |@? |i ThUi E|*|) MiuLhi @ 4ih}ih uLh iih) ULt| UL?|?}i?U)c
|i i TiU|i_ ThUi E|*|) 4t| Mi }ih E*Lih @*tL i? ULt| @hit Lih
|4i
W? UL?|h@t|c |i Thiti?| t|_) tLt |@| u h4t< ULt|t @hi Th@|i !?L*i_}ic
@ 4ih}ih 4@) _iUhi@ti |i i TiU|i_ 4@h!i| ThUic @*tL |L| t)?ih}it Ai
_gihi?Ui Mi|ii? 6@hhi** @?_ 5@ThL<t @?_ 4) hit*|t t _i |L Lh _gihi?|
4L_i*t Lu |i Thi4ih}ih t|@|L? W| t i**!?L? |@| h4t | *L 4@h}?@*
ULt|t ThL_Ui 4Lhi |@? h4t | } 4@h}?@* ULt|tc @ Ti?L4i?L? i 4@)
U@** 4@h!i|?_Ui_ h@|L?@*3@|L? Ai !i) TL?| Lu |i Thiti?| T@Tih t |@|
|i 4@h!i| ?_Uit *itt h@|L?@*3@|L? ?_ih ?UL4T*i|i |@? ?_ih UL4T*i|i
?uLh4@|L? `i? @ h4 @t @ } ULt|c | T*@?t @ t4@** L|T| N?_ih
UL4T*i|i ?uLh4@|L?c |i UL4Ti||Lht @?|UT@|i |t @?_ i T@?_ |ih L|T|
Uc ? |h?c hi_Uit hit_@* _i4@?_ |L |i }ULt| h4 L?ti^i?|*)c
@ }ULt| h4 @*tL |i?_t |L 4ii| @ *L hit_@* _i4@?_ @?_ t ?_Ui_ |L
hi_Ui L|T| ii? uh|ih 5U 4@h!i| ?_Ui_ h@|L?@*3@|L? U@??L| LUUh u
ULt|t @hi Th@|i !?L*i_}i @?_ |tc 4ih}iht }i?ih@|i @? i |h@ iUi?U) }@?
? 4@h!i|t | @t)44i|hU ?uLh4@|L?c _i |L TLL*?} Lu ?uLh4@|L?
2
W? 4@h!i|t | U|@|?} ULt|tc |i ThUi @*tL U|@|itc @?_ UL?t4ih
i*u@hi U@??L| Mi ii_ @t @ u?U|L? Lu |i ThUi *ii* L?*) t @ uh|ih
UL4T*U@|L?c UL?t4iht _L ?L| ?@4M}Lt*) *!i Lh _t*!i ThUi U|@|L?t
? |i L?i @?_c UL?t4iht M) 4Lhi i? |i ThUi t *Lc @?_ *itt i? |
t } Ai) 4@) UL?t4i |i t@4i @ih@}i @4L?| @t ?_ih t|@M*i ThUitc
M| @| @ *Lih @ih@}i i Ti?_|hi EThUi |4it ^@?||) ? |i L|ih @?_c
ThUi U|@|L?t Uhi@|i @ U|@|?} hi@* ?UL4ic U t _t*!i_ u UL?t4iht
@hi ht!@ihti Ai ht! igiU| _L4?@|it |i tMt|||L? igiU| u UL?t4iht @hi
t|hL?}*) ht! @ihtic |i }LL_ UL?t|||it @ *@h}i i Ti?_|hi t@hi @?_ _i4@?_ t
?i*@t|U W ** tL |@| @ 4ih}ih hi_Uit ThUi U|@|L?tc t?Ui |i 4?44
Lu |L ULt|t EU _i|ih4?it |i 4L?LTL*) ThUi U|@|it *itt |@? |i t4
Lu |L ULt|t EU _i|ih4?it |i _LTL*) ThUi t @ hit*|c @ 4ih}ih 4@)
?Uhi@ti UL?t4ih i*u@hic ii? |L| hi_U?} |i ThUi *ii*
W4T*U@|L?t uLh 4ih}ih UL?|hL* @?_ |i tLU@**i_ iUi?U) _iui?Ui @hi tTi**i_
L| ? |i UL?U*_?} tiU|L?
2
Ai L_i*
L?t_ih @? ?_t|h) | |L h4t ' c 2 Ai }LL_ t L4L}i?iLt @?_ tL*_
@| |i 4@h!i|U*i@h?} ThUic }i? M) |i ?ihti _i4@?_ u?U|L? R ' k^ ^2 ,@U h4 L?t L?i T*@?|c | UL?t|@?| hi|h?t |L tU@*i Ai 4@h}?@* ULt|
? @ T*@?|c _i?L|i_ S c t t|LU@t|U @?_ _t|hM|i_ L? dSu c SM o | 4L4i?|t
.S ' > k @?_ @o iSj ' j2 AL i?thi TLt|i i^*Mh4 ^@?||itc | t
@tt4i_ |@| SM 2k*n>* 4ih}ih 4i@?t |@| |i |L T*@?|t @hi LTih@|i_
|? |i t@4i h4 W @tt4i |@| |i ULt|t @hi _i?|U@**) @?_ ?_iTi?_i?|*)
_t|hM|i_ Lih T*@?|tc ?_iTi?_i?| Lu L?ihtT W? hi@*|)c _Lt)?Uh@tit 4}|
@| *i@t| T@h|*) t|i4 uhL4 _gihi?| 4@?@}i4i?| t|)*itc tL |@| @ 4ih}ih L*_
?Uhi@ti |i ULhhi*@|L? Mi|ii? |i |L ULt|t Wu |@| t |i U@tic |i hit*|t |L
uL**L L*_ Mi i@!i?i_
6h4t !?L |ih L? ULt|t MiuLhi ULLt?} ^@?||it OLiihc |i) _L
?L| !?L |ih UL4Ti||Lh<t ULt|c L?*) |i ULt| _t|hM|L? Oi?Uic |i ?|ih@U
|L? 4t| Mi @?@*)3i_ @t @ }@4i | ?UL4T*i|i ?uLh4@|L? W? @ @)it@?
@t i^*Mh4c h4 ULLtit @ tTT*) u?U|L? ^ ES c tL @t |L 4@ 43i
|i i TiU|i_ ThL|c .S dk ^ ^ ES S o ^ c }i? |i tTT*) u?U|L? ULti?
M) |i UL4Ti||Lhc ^ ES 6h4 <t i^*Mh4 ^@?||) t }i? M) ^ ES '

Ek > ES > Ai _LTL*) ThUi t
2
R_ ES '

[
ES > Ek n 2> n
2 E
Ai U@*U*@|L?t @hi t|@?_@h_ @?_ |ihiuLhi L4||i_
4ih}ih }it |i 4L?LTL*t| |i LTTLh|?|) |L h@|L?@*3i ThL_U|L? @|
i@U TL?| ? |4i Bi? @ |L|@* ThL_U|L?c ^c |i 4L?LTL*t| @**LU@|it ThL
_U|L? Mi|ii? T*@?|t tL @t |L 4?43i |i ThL_U|L? ULt|tc S ^ ES n S2 ^2 ES
`| UL?t|@?| hi|h?t |L tU@*ic |i 4L?LTL*t| t4T*) @**LU@|it @** ThL_U|L?
|L |i T*@?| | |i *Lit| ULt| L?ti^i?|*)c |i 4L?LTL*t|<t |iU?L*L}) @t
UL?t|@?| hi|h?t |L tU@*i @?_ t U@h@U|ih3i_ M) |i t|LU@t|U 4@h}?@* ULt|
S 4? iS c S2 jc U t |i tLU@**i_ ht|Lh_ih t|@|t|U Ai 4i@? t _i?L|i_
M) > @?_ @h@?Ui t _i?L|i_ M) j2 ETTi?_ Ai 4ih}ih _Lit ?L| }i?
ih@|i @?) t)?ih}itc _i?i_ @t ULt| t@?}t ? @__|L? |L h@|L?@*3@|L? Ai
4L?LTL*) ULLtit |i tTT*) u?U|L? ^ 6 ES tL @t |L 4@ 43i |i 4L?LTL*)
ThL| Ek ^ S ^ Ai 4L?LTL*) ThUi t }i? M)
R6 ES '

kn> n
S> 2
2
E2
Ai U@*U*@|L?t @hi t|h@}|uLh@h_ @?_ |ihiuLhi L4||i_
2
Ai ,giU| Lu ih}ih L? |i hUi wii*
AL u@U*|@|i |i UL4T@htL? Mi|ii? _LTL*) @?_ 4L?LTL*) ThUitc UL?t_ih
@*tL @? ?|ih4i_@h) U@tic ?@4i*) @ )TL|i|U@* 4L?LTL*t| |@| _Lit ?L| @**L
e
?uLh4@|L?t@h?} Mi|ii? |i |L T*@?|t 5U @ 4L?LTL*t| L*_ ti|
Rh ES ' E*2Ek n > n E*2ES > n E*2ES2 >c
| . Rh ' E*2Ek n >
E
Ai i TiU|i_ 4L?LTL*) ThUi 4@) Mi h||i? @t .R6 ' 2 Ek n >n 2 > > c
h i |i )TL|i|U@* i TiU|i_ 4L?LTL*) ThUi |@|
ihi |i ht| |ih4 i^@*t . Rc
L*_ hit*| u |i 4L?LTL*t| LTih@|i_ |i |L T*@?|t tiT@h@|i*) Ai tiUL?_
|ih4 t |i hi_U|L? ? ThUi _i |L h@|L?@*3@|L? uL**L?} uhL4 ?uLh4@|L?
TLL*?} Ai i TiU|i_ _LTL*) ThUi t }i? M) .R_ ' k n 2 > Ai U@?}i ?
|i i TiU|i_ ThUi @t @ hit*| Lu |i 4ih}ih 4@) |i? Mi _iUL4TLti_ ?|L
.R6 .R_ '

Ek > n
>> S
2
Ee
Ai ht| |ih4 t TLt|i @?_ U@T|hit |i 4@h!i| TLih igiU| Lu |i 4ih}ihc |i
tiUL?_ t ?i}@|i @?_ U@T|hit |i igiU| Lu h@|L?@*3@|L? #iTi?_?} L? |i
UhU4t|@?Uitc i|ih igiU| U@? _L4?@|i Wu |i ULt| @h@M*|) t t4@** i?L}
j2 2
b
Ek >2 c @ 4ih}ih h@tit |i i TiU|i_ ThUi W? T@h|U*@hc u |ihi t
?L ?Uih|@?|)c |i? |i Thiti?| 4L_i* t @ tTiU@* U@ti Lu 6@hhi** @?_ 5@ThL<t
4L_i*c @?_ @ 4ih}ih ** @*@)t h@ti |i Ei TiU|i_ ThUi
L?t_ih ?L @? i @4T*i ihi ?Uih|@?|) t *@h}i Ai ULt| t i|ih }
S ' Lh *L S ' f Ai ThLM@M*|) Lu @ } ULt| t Z ' *e wi| k ' D*e
`| @ |LTL?| _t|hM|L?c |i ThUi t i|ih } Ei? ES n S2 *2 ' c
4i_4 Ei? ES n S2 *2 ' *2c Lh *L Ei? ES n S2 *2 ' f Ai @ttLU@|i_
ThLM@M*|it @hi Z 2 ' b*Sc 2Z E Z ' S*Sc @?_ E Z2 ' *S N?_ih
_LTL*)c ThUit @hi DS*eHc 2*eH @?_ H*eHc hit*|?} ? |i i TiU|i_ ThUi .R_ '
.fe*.SH N?_ih 4L?LTL*)c ThUit @hi De*eHc f*eH @?_ f*eHc hit*|?} ? |i
i TiU|i_ ThUi .R6 ' SbS*.SH Oi?Uic
4 Wr
vhh wklv/ uvw qrwh wkdw wkh sulfh lv lqfuhdvhg li/ dqg rqo| li/ ? + , @6 1 Vhfrqg/
s
xvh wkh idfw wkdw ? 45 55 dv lv vkrzq lq Dsshqgl{ D/ Ohppd 61
D
hLTLt|L? Wu ULt|t @h) tUi?|*)c @ 4ih}ih |L| t)?ih}it 4@) hi_Ui
|i i TiU|i_ ThUi
hLTLt|L? tLt |@| 6@hhi** @?_ 5@ThL<t hLTLt|L? 2 _Lit ?L| @TT*) |L ?
UL4T*i|i ?uLh4@|L? 4@h!i|t AL Mi||ih ?_iht|@?_ |i hi*@|L? Mi|ii? 6@hhi**
@?_ 5@ThL<t hit*|t @?_ 4?ic ?L|i |@| |i 4@h!i| ?_Uit *itt h@|L?@*3@|L?
?_ih ?UL4T*i|i |@? ?_ih UL4T*i|i ?uLh4@|L? ì? @ h4 @t } ULt|tc
| T*@?t @ t4@** L|T| N?_ih UL4T*i|i ?uLh4@|L?c UL4Ti||Lht @?|UT@|i |t
@?_ i T@?_ |ih L|T| Uc ? |h?c hi_Uit hit_@* _i4@?_ |L |i }ULt|
h4 L?tiî?|*)c @ }ULt| h4 @*tL |i?_t |L 4ii| @ *L hit_@* _i4@?_c
@?_ t |t ?_Ui_ |L hi_Ui L|T| ii? uh|ih 5U 4@h!i| ?_Ui_ h@
|L?@*3@|L? U@??L| LUUh u ULt|t @hi Th@|i !?L*i_}i Atc ? @t)44i|hU
?uLh4@|L? 4@h!i|tc @ 4ih}ih 4@) }i?ih@|i @? @__|L?@* ULt| hi_U|L? }@?
@?_ i?Uic @ ThUi hi_U|L? }@?c _i |L TLL*?} Lu ?uLh4@|L?
?L|ih @) Lu ?_iht|@?_?} |i hit*| t |L UL4T@hi |i _LTL*) ThUic
}i? M) i^@|L? Ec | |i 4L?LTL*) ThUic }i? M) i^@|L? E2c |L ?_
|i ULt| UL?|?}i?Uit ?_ih U @ 4L?LTL*t| L*_ U@h}i @ *Lih ThUi |@?
@ _LTL*) 5?Ui |i 4L?LTL*t| TihuiU|*) h@|L?@*3it ThL_U|L?c |i 4L?LTL*)
ThUi _iTi?_t L?*) L? |i *Lit| 4@h}?@* ULt| S ' 4? iS c S2 j @| iih) ULt|
UL?|?}i?U) N?_ih _LTL*)c Liihc |i }ULt| T*@?| @*tL ThL_Uit @?_ UL?
tiî?|*)c |i _LTL*) ThUi @*tL _iTi?_t TLt|i*) L? S ' 4@ iS c S2 j L?t_ih
|i i Tih4i?| Lu ?Uhi@t?} S @| @ }i? S Ai _LTL*) ThUi t |i? ?Uhi@ti_
|L| @giU|?} |i 4L?LTL*) ThUi | tL4i TL?|c |i _LTL*) ThUi i Uii_t
|i 4L?LTL*) ThUi @?_ ? T@h|U*@hc | U@? Mi tL? |@| R6 ES R_ ESc i?
iih S : k n 2 >
OLh3L?|@* 4ih}iht |L| t)?ih}it 4@) @*tL hi_Ui |i ThUi u |i h4t
@hi ?L*i_ ? |@U| UL**tL? ThLh |L |i 4ih}ihc @t tL? M) VihMLi? EbbD
Ai ht| hi@tL? t |@| @*hi@_) @| |i L|ti|c |i h4t @i 4U 4@h!i| TLih
Ai tiUL?_ hi@tL? t |@|c |L| t_iT@)4i?|tc |i U@h|i* U@??L| h@|L?@*
S
3i ThL_U|L? @t iUi?|*) @t |i ?|i}h@|i_ h4c Lh ii? |i 4@h!i| ?_ih
UL4Ti||L?
22
Ai ,giU| Lu ih}ih L? L?t4ih ì*u@hi
W? 4@h!i|t | U|@|?} ULt|tc |i ThUi @*tL U|@|itc @?_ UL?t4ih i*u@hi
U@??L| Mi ii_ @t @ u?U|L? Lu |i ThUi *ii* L?*)( ThUi @h@M*|) t @*tL
4TLh|@?| W? u@U|c
wi44@ U@h|i* _iUhi@tit ThUi @h@M*|)
Ai ThLLu t hi*i}@|i_ |L TTi?_ ,tti?|@**)c |t t _i |L |i @h@M*|) Lu
|i ThUi ?_ih UL4Ti||L? Mi?} _i|ih4?i_ M) |i @h@M*|) Lu |i t4 Lu |i
|L E?_iTi?_i?| ULt|tc *i |i @h@M*|) Lu |i U@h|i* ThUi t _i|ih4?i_ M)
|i @h@M*|) Lu L?i ULt| L?*)
t @ uh|ih UL4T*U@|L?c UL?t4iht _L ?L| ?@4M}Lt*) *!i Lh _t*!i
ThUi U|@|L?t AL Mi 4Lhi ThiUtic |i *?i@h 4@h!i| _i4@?_ u?U|L? U@?
Mi _ihi_ uhL4 |*|) 4@ 43@|L? u UL?t4ih Thiuihi?Uit @hi _i?|U@*c ^@t
*?i@h @?_ ^@_h@|U ? ^ Oi?Uic ?_hiU| |*|) t }i? M) T ERc 6 ' t

2
ihi 6 _i?L|it UL?t4ih ?UL4ic @?_ t t @ t|hU|*) ?Uhi@t?} u?U|L? Ai
|*|) u?U|L? t @tt4i_ |L t@|tu) |i L? i4@?? Lh}i?t|ih? ThLTih|)c
tL |@| UL?t4ih i*u@hi U@? Mi i@*@|i_ M) i TiU|i_ |*|)2 Ai U@?}i ?
i TiU|i_ |*|)c _i |L @ U@?}i ? ThUi _t|hM|L?c U@? Mi @TThL 4@|i_ M)
.T ER6 c 6 .T R_ c 6 %
.R .R
Re
6
_
5
&
n
4R 7
2
q
@o iR6 j @o R_
Re2
r6
8 ED
Ai uLh4*@ t _ihi_ t?} @ tiUL?_ _i}hii A@)*Lh @TThL 4@|L? Lu |i ?_hiU|
|*|) u?U|L? @hL?_ @ ThUi Re EiMih) @?_ 5|}*|3c bH Ai U@?}i ?
i TiU|i_ |*|) L?*) _iTi?_t L? |i ETihUi?|@}i U@?}i ? |i i TiU|i_ ThUic
5 Wkh
h{shfwhg frqvxphu vxusoxv lv qrw d jrrg phdvxuh ri frqvxphu zhoiduh/ xqohvv frq0
vxphuv duh ulvn0qhwudo dqg wkh lqfrph hodvwlflw| ri ghpdqg lv }hur +Vwhqqhn/ 4<<<,1
.
Ek R2 n 6 c
@?_ @ Ehi*@|i U@?}i ? ThUi @h@M*|) Ai L?*) T@h@4i|ih Lu |i @TThL 4@
|L?c 4R c t |i ULiUi?| Lu hi*@|i ThUi ht! @ihtL? Ah?Lt!)c 5@*|c @?_
5U4|3 EbHf ThLi @? _i?||) |@| *?!t ThUi ht! @ihtL? |L 4Lhi u@4*@h
UL?UiT|t W? |i Thiti?| UL?|i |c ihi |i ?UL4i i*@t|U|) Lu _i4@?_ t 3ihLc
4R 0 r 46 c
ES
ihi 0 t |i ThUi i*@t|U|) Lu _i4@?_c r t |i i Ti?_|hi t@hic @?_ 46 t |i
ULiUi?| Lu hi*@|i ?UL4i ht! @ihtL? L?tiî?|*)c |i ThUi ht!@ihtL?
U@? Mi _iUL4TLti_ ?|L |L igiU|tG |i RtMt|||L? igiU| @?_ |i Rht! igiU|
Wu _i4@?_ t*LTit _L?@h_c |i tMt|||L? igiU| 4@!it UL?t4iht u@Lh@M*i |L
ThUi ht!c t?Ui |i) M) @ *@h}i ^@?||) i? |i ThUi t *L @?_ @ t4@** ^@?
||) i? |i ThUi t } Oi?Uic |i) 4}| M) |i t@4i i TiU|i_ @4L?| @t
?_ih t|@M*i ThUitc M| @| @ *Lih i TiU|i_ i Ti?_|hi EThUi |4it ^@?||)
Ai tiUL?_ igiU| 4@!it E?UL4i ht!@ihti UL?t4iht @*tL _t*!i ThUi ht!c
t?Ui @h@|L?t ? |i ThUi Uhi@|i @h@|L?t ? hi@* ?UL4ic ? ThLTLh|L? |L |i
i Ti?_|hi t@hic @?_ |@| tU ?UL4i @h@|L?t @hi i@*@|i_ @UULh_?} |L
?UL4i ht! Thiuihi?Uit L?tiî?|*)c |i ?i| igiU| t @4M}Lt
hLTLt|L? 2 Wu UL?t4iht @hi tUi?|*) ht!@ihti E|L@h_ ?UL4i ht!c
@?_ u |i i Ti?_|hi t@hi Lu |i UL44L_|) t tUi?|*) *@h}ic @ 4ih}ih ?
Uhi@tit i TiU|i_ UL?t4ih i*u@hi M) hi_U?} ThUi @h@M*|)c ?_iTi?_i?| Lu
|i igiU| L? |i ThUi *ii*
Ai ThLLu uL**Lt 44i_@|i*) uhL4 |i u@U| |@| @?) 46 t UL4T@|M*i | @?)
}i? _i4@?_ u?U|L?c @?_ |@| r U@? Mi uhii*) @hi_ M) @h)?} ?UL4ic 6c
|L| @giU|?} _i4@?_ ) i4T*L)?} @ 4Lhi i M*i _i4@?_ tUi_*ic | t
@*tL TLttM*i |L t|_) |i igiU| Lu |i ThUi @?_ ?UL4i i*@t|U|it Lu _i4@?_
Ai T@Tih tLt |@| |L @ttitt |i i*u@hi igiU| Lu @ 4ih}ihc | t 4TLh|@?|
|L ?U*_i |i igiU| L? ThUi @h@M*|) AL i@*@|i |t igiU|c |i t3i Lu |i
6 Frqvxphu ulvn0suhihuhqfhv wrzdug sulfh ulvn duh uhsuhvhqwhg e| wkh frhflhqw ri uhodwlyh
sulfh0ulvn dyhuvlrq/ s @ +Yss +s> p, s, @Ys +s> p,1
H
4@h!i| @t 4i@thi_ M) r @?_ UL?t4ih ht!Thiuihi?Uit @t 4i@thi_ M) 46 4t|
Mi ?U*_i_
L?U*tL?t
Ai iUL?L4U *|ih@|hi ThL_it tiih@* @h}4i?|t ) UL4Ti||L? @|Lh
|it tL*_ M@*@?Ui |i @?|UL4Ti||i igiU|t Lu 4ih}iht @}@?t| |ih iUi?U)
}@?t `**@4tL? EbSH tit @ ULt|Mi?i| @?@*)tt |L tL |@| Lh3L?|@*
4ih}iht 4@) ?Uhi@ti tLU@* i*u@hi u |i) t@i L? ULt|t 6@hhi** @?_ 5@ThL
Ebbf t|_) 4ih}ih ? @ Lh?L| 4L_i* @?_ tL |@| UL?t4iht 4@) @*tL
}@?c u |i 4ih}ih }i?ih@|it ULt| t)?ih}it Ai iUL?L4U *|ih@|hi @*tL ThL
_it Th@U|U@* |LL*t uLh 4@!?} |i |h@_iLg Mi|ii? @?|UL4Ti||i igiU|t
@?_ iUi?U) }@?tc tU @t t4*@|L? @?@*)tt Eìh_i? @?_ 6hLiMc bbe( W@*_
@?_ VihMLi?c 2ff @?_ iUL?L4i|hU |iU?ît |L it|4@|i |i T@ttL? Lu h4
tTiUU ULt| t@?}t Eti?ui*|ihc t4Lhic @!ih @?_ Ukih4@?c bbH
Ai iUL?L4U @?@*)tt ? |t i*_ @t @_ tL4i 4T@U| L? TL*U) AL_@)c ti
ih@* 4ih}ih UL?|hL* t)t|i4t ? |i ,# @**L @ tLU@**i_ iUi?U) _iui?Uic @?
i @4T*i Lu U t |i N5 | |t 6i_ih@* ih}ih B_i*?it Ai ht| hi*i@tit
Lu |i B_i*?it ? bSH @?_ bH2 LTTLti_ iUi?U) UL?t_ih@|L?t ?*itt ?_ih
i UiT|L?@* UhU4t|@?Uit Ai *@|ih hi*i@tit Lu |i B_i*?it ? bHe @?_ bb2
EU t t|** ? ti |L_@) hii@* @ 4Lhi t)4T@|i|U |hi@|4i?| Lu iUi?U)
U*@4t W? ,hLTic Liihc 4ih}ih TL*U) t t|** ?U*i@h @t UL?Uih?t |i hL*i Lu
iUi?Uit E+L**ihc 5|i??i! @?_ VihMLi?c 2fff( 5|i??i! @?_ VihMLi?c 2ff
Ai Thiti?| T@Tih _i4L?t|h@|it |i 4TLh|@?Ui Lu @ ti| Lu ThiLt*) ?i
}*iU|i_ UhU4t|@?Uit i? @ttitt?} |i igiU|t Lu Lh3L?|@* 4ih}iht W? 4@h
!i|t ihi h4t< ULt|t @hi Th@|i ?uLh4@|L?c 4ih}iht }i?ih@|i iUi?U) }@?t
@ttLU@|i_ | TLL*?} Lu ?uLh4@|L? AL |@!i |iti }@?t ?|L @UUL?|c | t
?iUitt@h) |L @ttitt |i _i}hii |L U ULt| tLU!t @hi _Lt)?Uh@|U @?_ ?uLh
4@|L? t @t)44i|hU( |i _i}hii Lu UL?t4ih ht!@ihtL? @?_ |i t3i Lu |i
b
4@h!i| 5?Ui ?uLh4@|L? t }i?ih@**) 4TihuiU|c @?_ 4@) Lu|i? Mi ih) *4|i_c
|iti i |i?tL?t tii4 |L Mi Lu 4TLh|@?Ui uLh @ UL4T*i|i @ttitt4i?| Lu 4ih}iht
hi*4?@hit
wi| S @?_ S2 Mi _i?|U@**) @?_ ?_iTi?_i?|*) _t|hM|i_ @UULh_?} |L |i U
4*@|i _t|hM|L? u?U|L? 8 @?_ _i?t|) s #i?L|i |i 4i@? M) > @?_ |i
@h@?Ui M) j2 Ai ht|Lh_ih t|@|t|U S 4? iS c S2 j @t _i?t|) s ES '
2 d 8 ESo s ES Ai 4i@? t _i?L|i_ M) > @?_ |i @h@?Ui M) j2 Ai
tiUL?_Lh_ih t|@|t|U S 4@ iS c S2 j @t _i?t|) s ES ' 28 ES s ES Ai
4i@? t _i?L|i_ M) > @?_ |i @h@?Ui M) j 2 wi44@ 2
E 2 > n 2 > ' >(
2
E E> >2 ' > > (
E j2 ' 2 j 2 n 2 j2 n 2 E> >2 n
hLLu

2>
'
AL tii EG

2>
n 2 > '
2
>>

2 .S
n 2 .S '

2 .S
n 2 .S2 Oi?Ui

2>
n
n 2 > ' > AL tii EG ti > n > ' 2> Oi?Ui > > ' > >
2
2j
AL tii EG j2 '

2
n 2 j2 '

2.
ES >2 n 2 . ES2 >2 '
ES >2 Oi?Ui j 2 ' 2 . EES > n E> >2 n 2 .

2.
ES >2 n
2
S> n >>
c @?_
j 2 ' 2 . ES >2 n 2 ES > E> > n E> >2 n
n 2 .

2
2
S>
2
n2 S>
>> n >>
2 Oi?Uic j 2 ' 2 j 2 n 2 j 2 n 2 E> >2 n
>> wi44@ s
2j2 (
s
E > > 2 2j2 E > > hLLu
AL tii EG > > ' .S .S ' . mS S2 m L|i @*tL |@| mS S2 m '
t
s
ES S2 2 @?_ i?Uic > > ' . ES S2 2 5?Ui t t|hU|*) UL?U@ic
t
f
t
|i? M) ai?ti?<t ?i^@*|)c i @i . ES S2 2 t
t
. ES S2 2 c @?_ i?Ui
. ES S2 2 6h|ih . ES S2 2 ' . EES > ES2 >2 ' 2j2
s
@?_ i?Uic > > 2j 2 AL tii EG L4M?i wi44@ 2 E @?_ wi44@ E
s
s
|L }i| 2> > > 2j 2 c @?_ i?Ui > > 2 2j 2 >> hLLu Lu wi44@
5?Ui ThUit @hi *?i@h ? ULt|tc 4L?LTL*) ThUi @h@M*|) t

@o iR6 j ' EYR6 *YS2 @o iSj ' j2 c
e
E.
@?_ _LTL*) ThUi @h@M*|) t
q
r
@o R_ '
2 [
'
YR_ *YS
2

@o iS j ' 2 j 2 e
EH
Oi?Uic |hii u@U|Lht _i|ih4?i |i t3i Lu |i @h@?UitG |i ti?t||) Lu ThUi
|L ULt| tLU!tc |i ?4Mih Lu LTih@|i_ T*@?|tc @?_ |i @h@M*|) Lu ULt| 6ht|c
|i ti?t||) Lu |i ThUi |L ULt| tLU!t t |i t@4i ? @t)44i|hU ?uLh4@|L?
_LTL*) @t ? 4L?LTL*)c |@| t YR_ *YS ' YR6 *YS ' *2 5iUL?_c @ 4ih}ih hi
_Uit |i ?4Mih Lu T*@?|t LTih@|i_ @| i@U TL?| ? |4ic U ?@4M}Lt*)
|i?_t |L _iUhi@ti ThUi @h@M*|) Ah_c |i @h@M*|) Lu S 4}| Mi *@h}ih @t
i** @t t4@**ih |@? |i @h@M*|) Lu S c _iTi?_?} L? |i i @U| _t|hM|L?
L?ti^i?|*)c |ihi @hi |L TL|i?|@**) LTTLt?} igiU|t
AL u@U*|@|i |i UL4T@htL?c |i @h@M*|) Lu |i _LTL*) ThUi t hih||i?
@t
q
@o R_
r
' EYR6 *YS2 @o iSj n EYR6 *YS EYR6 *YS SJ iSc Sj n EYR6 *YS2 @o iSj
Eb
2

'
j n SJ iSc Sj n j2 e
2
e
q
r
5?Ui SJ iSc Sj : f @?_ j 2 : fc | uL**Lt |@| @o iR6 j @o R_ +iuihi?Uit

ti?ui*|ihc h*i)( t4Lhic #@_( @!ihc aL?@|@? ( U kih?@?c 5}?i
@h)G W_i?|u)?} |i 6h45TiUU @ttAhL} +@|ic 6A #tUttL?
T@Tihc bbH
6@hhi**c aLtiT( 5@ThLc @h*G OLh3L?|@* ih}ihtG ? ,^*Mh4 ?@*)ttc
4ihU@? ,UL?L4U +ii( HfEc @hU bbfc f.2S
W@*_c @hU( VihMLi?c 6h@?!G "@?|u)?} |i ,giU|t Lu OLh3L?|@* ih}ih ?
,hLTi@? L4Ti||L? L*U)c 44iL N?iht|) Lu wii?c 2ff
iMih)c #@_ B( 5|}*|3c aLtiT ,G Ai AiLh) Lu L44L_|) hUi
5|@M*3@|L?G 5|_) ? |i ,UL?L4Ut Lu +t!c *@hi?_L? hittc uLh_c
bH
+L**ihc w@htOi?_h!( 5|i??i!c aL@?( VihMLi?c 6h@?!G ,Ui?U) B@?t uhL4
ih}ihtc +iTLh| |L |i ,hLTi@? L44ttL? E, L?|h@U| WW%bH%ffc
6iMh@h) 2fff
5|i??i!c aL@?G Ai , TiU|i_ L?t4ih<t 5hT*t @t @ ì*u@hi i@thic aLh
?@* Lu M*U ,UL?L4Utc .E2c }t| bbbc 2SD2HH
5|i??i!c aL@?( VihMLi?c 6h@?!G ih}ih L?|hL* @?_ ,?|ihThti L4Ti||i
?ittc +iTLh| |L |i ,hLTi@? L44ttL? E, L?|h@U| WWW%bb%fSDc Th*
2ff
Ah?Lt!)c 5|iTi? a( 5@*|c O@4( 5U4|3c ?_hiG L?t4ih<t 5hT*tc
hUi W?t|@M*|)c @?_ L?t4ih ì*u@hic ,UL?L4i|hU@( eHEc a@? bHfc
DD2
VihMLi?c 6h@?!G LhTLh@|i +it|hU|h?} ? @ L**ti *}LTL*)c W?|ih?@
|L?@* aLh?@* Lu W?_t|h@* h}@?3@|L?( Ec 5iT|i4Mih bbDc DDe
2
ìh_i?c Bhi}Lh) a( 6hLiMc w!i c Ai ,giU|t Lu ih}iht ? #gihi?|@|i_
hL_U|t W?_t|hitG wL}| #i4@?_ @?_ ih}ih L*U)c aLh?@* Lu w@c
,UL?L4Utc @?_ h}@?3@|L?( fE2c U|LMih bbec T@}it ef.2S
`**@4tL?c *ih ,G ,UL?L4it @t @? ?||ht| #iui?UiG Ai ì*u@hi Ah@_i
Lgtc 4ihU@? ,UL?L4U +ii( DHc bSHc HS
#LU4i?|G 6@t|i

Download Report

Horizontal Mergers Without Synergies May Increase Consumer

Paperzz.com

Your Paperzz