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)
Ashenfelter, Orley C., Daniel S. Hosken, and Matthew C. Weinberg.
"The Price Effects of a Large Merger of Manufacturers: A Case Study of Maytag-Whirlpool."
American Economic Journal: Economic Policy,
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Production, Pricing, and Market Structure; Size Distribution of Firms
Monopolization; Horizontal Anticompetitive Practices
Appliances; Other Consumer Durables