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Journal of Competition Law and Economics Advance Access published online on October 23, 2007
Journal of Competition Law and Economics, doi:10.1093/joclec/nhm029
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© The Author (2007). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

THE PRICE EFFECTS OF HORIZONTAL MERGERS

Matthew Weinberg*

Correspondence: * Assistant Professor of Economics, University of Georgia, Department of Economics, Brooks Hall Fifth Floor, Athens, GA 30602-6254, USA. E-mail: mweinber{at}uga.edu

This paper surveys the literature on the price effects of horizontal mergers. Most mergers examined in the nine studies conducted over the past 22 years resulted in increased prices for both the merging parties and rival firms, at least in the short run. There is some evidence that product prices increase after mergers are announced, but before they are consummated. Recent evidence from consumer product markets suggests that a stricter merger policy is needed to protect consumer welfare.


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