Dear colleagues,

The Department of Economics cordially invites you to the WU Economics Research Seminar on Wednesday, May 17^th, with

Richard Kališ

(University of Economics Bratislava)

on

"Merger dilemma in yardstick competition"

Abstract: The paper contributes to the literature on mergers in a yardstick competition. The yardstick method is an appealing incentive-based approach; however, it is not immune to potential strategic behaviour concerning horizontal mergers. Because firms in frontier-based regulated industries are evaluated to the most efficient peers, this frontier is prone to inward shifts after mergers. This inward shift can easily overwhelm the expected cost savings of merged firms. The position of the efficient peer being merged is crucial concerning other peers on the frontier. Moreover, compared to the competitive markets, the number of firms outside the merger negatively correlates with industry outcomes after the merger. Our results can serve as a guideline for mergers in yardstick competition similar to one proposed by European Commission for competitive industries.

Date: Wednesday, May 17^th

Time: 2.00 to 3.30 pm (CET)

Location: building D4/entrance A, 2^nd floor, room D4.2.008

With best regards,

Harald Oberhofer

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Univ.-Prof. Dr. Harald Oberhofer

Department of Economics 

WU Vienna University of Economics and Business

Phone: +43/1/31336-4984

Email: harald.oberhofer@wu.ac.at

Webpage: https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/

Austrian Institute of Economic Research (WIFO)

Phone: +43/1/7982601-468

Email: harald.oberhofer@wifo.ac.at

Webpage: http://www.wifo.ac.at/harald_oberhofer