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Project Citation: 

Project Description

Summary:  View help for Summary Many experts speculate that US antitrust policy towards horizontal mergers has been too lenient. We estimate the price effects of Whirlpool's acquisition of Maytag to provide new evidence on this debate. We compare price changes in appliance markets most affected by the merger to markets where concentration changed much less or not at all. We estimate price increases for dishwashers and relatively large price increases for clothes dryers, but no price effects for refrigerators or clothes washers. The combined firm's market share fell across all four affected categories, and the number of distinct appliance products offered for sale fell. (JEL G34, K21, L11, L41, L68)

Scope of Project

JEL Classification:  View help for JEL Classification
      L11 Production, Pricing, and Market Structure • Size Distribution of Firms
      G34 Mergers • Acquisitions • Restructuring • Corporate Governance
      L68 Appliances • Furniture • Other Consumer Durables
      L41 Monopolization • Horizontal Anticompetitive Practices
      K21 Antitrust Law


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