← Search

Multiproduct Firms, Horizontal Mergers, and International Trade

Jackie M.L. Chan¹; Michael Irlacher²; Michael Koch³

¹ Aarhus University [email protected] · ² JKU Linz and CESifo [email protected] · ³ Aarhus University [email protected]

Acquirers and targets in horizontal mergers are typically multiproduct firms that often sell the same core product. How do mergers affect these multiproduct firms? Using Danish data, we establish empirically that the combined domestic product scope of the acquirer and target falls after a merger, and sales of the acquirer become more concentrated towards the core product. Moreover, the acquirer exports more products to more destinations that are costly to serve. To rationalize these findings, we develop a model of mergers between oligopolistic firms, highlighting merger-induced within-firm adjustments along the product dimension that promote efficiency improvements and international trade.

DOI

10.1162/rest.a.255

Pages

1-45

Language

en

Export

BibTeX

Sources

openalex crossref