Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86365
Authors: 
Goppelsroeder, Marie
Schinkel, Maarten Pieter
Tuinstra, Jan
Year of Publication: 
2006
Series/Report no.: 
Tinbergen Institute Discussion Paper 06-074/1
Abstract: 
This paper introduces the Werden-Froeb Index (WFI) to assist in evaluating merger-specific efficiencies in horizontal mergers. The index measures the weighted average reduction in marginal costs required to restore pre-merger equilibrium prices and quantities after the (full or partial) merger is consummated. The WFI is well defined, objective and robust, and it has relatively low information requirements. We propose to use the index as a natural complement to concentration measures such as the Hirschmann-Herfindahl Index in the assessment of horizontal mergers.
Subjects: 
Merger control
efficiency defense
index
HHI
JEL: 
L10
L40
C43
Document Type: 
Working Paper

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