Market Power Absent Merger Review: Brewing in Perú

Ariel A. Casarin; Magdalena Cornejo; María Eugenia Delfino

doi:10.1007/s11151-019-09703-8

Market Power Absent Merger Review: Brewing in Perú

Ariel A. Casarin^*, Magdalena Cornejo, María Eugenia Delfino

^*Autor correspondiente de este trabajo

ESE Business School

Producción científica: Contribución a una revista › Artículo › revisión exhaustiva

1 Cita (Scopus)

Resumen

We examine the extent of market power in the brewing market of Perú, where the absence of preventive merger review eased consolidation into a single industrial brewer. We use a standard oligopoly model and exploit both seasonality in demand and atypically large and frequent variations in the structure and level of excise taxes to identify variations in market power. Our results provide evidence of the ineffectiveness of competition policy as uncontested mergers resulted in a degree of market power that decreased only with the entry of new firms.

Idioma original	Inglés
Páginas (desde-hasta)	535-556
Número de páginas	22
Publicación	Review of Industrial Organization
Volumen	56
N.º	3
DOI	https://doi.org/10.1007/s11151-019-09703-8
Estado	Publicada - 1 may. 2020

Nota bibliográfica

Publisher Copyright:
© 2019, Springer Science+Business Media, LLC, part of Springer Nature.

Palabras clave

Antitrust
Brewing industry
Market power
Merger review

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10.1007/s11151-019-09703-8

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abstract = "We examine the extent of market power in the brewing market of Per{\'u}, where the absence of preventive merger review eased consolidation into a single industrial brewer. We use a standard oligopoly model and exploit both seasonality in demand and atypically large and frequent variations in the structure and level of excise taxes to identify variations in market power. Our results provide evidence of the ineffectiveness of competition policy as uncontested mergers resulted in a degree of market power that decreased only with the entry of new firms.",

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author = "Casarin, {Ariel A.} and Magdalena Cornejo and Delfino, {Mar{\'i}a Eugenia}",

note = "Funding Information: Ariel A. Casarin: Financial support from IDRC-Canada Grant 107206-001 is gratefully acknowledged. We thank three anonymous reviewers and in particular the editor for his valuable suggestions and guidance in improving our paper. All errors are ours. Publisher Copyright: {\textcopyright} 2019, Springer Science+Business Media, LLC, part of Springer Nature.",

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N2 - We examine the extent of market power in the brewing market of Perú, where the absence of preventive merger review eased consolidation into a single industrial brewer. We use a standard oligopoly model and exploit both seasonality in demand and atypically large and frequent variations in the structure and level of excise taxes to identify variations in market power. Our results provide evidence of the ineffectiveness of competition policy as uncontested mergers resulted in a degree of market power that decreased only with the entry of new firms.

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Market Power Absent Merger Review: Brewing in Perú

Resumen

Nota bibliográfica

Palabras clave

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