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Mergers and coordinated effects

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  • Porter, Robert H.
Abstract
A merger is said to have coordinated effects if it results in more collusive outcomes. I review the theory of collusion, and the role played by communication in coordination. Mergers can affect the enforcement and participation constraints for a collusive agreement, and the selection from the equilibrium set of outcomes. I describe some recent empirical studies of the effects of mergers on collusion, and the underlying measurement issues associated with identifying the degree of coordination. I also discuss some recent cases in which coordinated effects were a concern, including both merger reviews and ex post investigations.

Suggested Citation

  • Porter, Robert H., 2020. "Mergers and coordinated effects," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:indorg:v:73:y:2020:i:c:s0167718720300059
    DOI: 10.1016/j.ijindorg.2020.102583
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    4. Joseph Farrell & Jonathan B. Baker, 2021. "Natural Oligopoly Responses, Repeated Games, and Coordinated Effects in Merger Analysis: A Perspective and Research Agenda," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(1), pages 103-141, February.
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