Grajek, Michał Gugler, Klaus Kretschmer, Tobias Miscisin, Ion
Year of Publication:
ESMT Working Paper 17-04
This paper studies five mergers in the European wireless telecommunication industry and analyzes their impact on prices and capital expenditures of both merging carriers and their rivals. We find substantial heterogeneity in the relationship between increases in concentration and carriers' prices. The specifics of each merger case clearly matter. Moreover, we find a positive correlation between the price and the investment effects; when the prices after merger increase (decrease), the investments increase (decrease) too. Thus, we document a trade-off between static and dynamic efficiencies of mergers.
telecom mergers static and dynamic efficiency difference-in-difference