Author, as appears in the article.: Brito D; Osório A; Ribeiro R; Vasconcelos H

Department: Economia

URV's Author/s: Osório da Costa, António Miguel

Keywords: Screening indicators Partial horizontal acquisitions Hhi Guppi Corporate control Banzhaf power index

Abstract: © 2018 Elsevier B.V. Recent years have witnessed an increased interest, by competition agencies, in assessing the competitive effects of partial acquisitions. We propose a generalization of the two most traditional indicators used to screen unilateral anti-competitive effects - the Herfindahl–Hirschman Index and the Gross Upward Price Pressure Index - to partial horizontal acquisition settings. The proposed generalized indicators are endogenously derived under a probabilistic voting model in which the manager of each firm is elected in a shareholder assembly between two potential candidates who seek to obtain utility from an exogenous rent associated with corporate office. The model (i) can cope with settings involving all types of owners and rights: owners that can be internal to the industry (rival firms) and external to the industry; and rights that can capture financial and corporate control interests, can be direct and indirect, can be partial or full, (ii) yields an endogenous measure of the owners ultimate corporate control rights, and (iii) can also be used - in case the potential acquisition is inferred to likely enhance market power - to devise divestiture structural remedies. We also provide an empirical application of the two proposed generalized indicators to several acquisitions in the wet shaving industry, with the objective of providing practitioners with a step-by-step illustration of how to compute them in antitrust cases.

Thematic Areas: Strategy and management Science and technology studies Industrial relations Industrial and manufacturing engineering Engineering (miscellaneous) Economics, econometrics and finance (miscellaneous) Economics and econometrics Economics Economia Ciencias sociales Business and management Aerospace engineering

licence for use: https://creativecommons.org/licenses/by/3.0/es/

ISSN: 01677187

Author's mail: antonio.osoriodacosta@urv.cat

Author identifier: 0000-0003-3376-0164

Record's date: 2023-02-19

Papper version: info:eu-repo/semantics/acceptedVersion

Link to the original source: https://www.sciencedirect.com/science/article/abs/pii/S0167718716304143

Licence document URL: http://repositori.urv.cat/ca/proteccio-de-dades/

Papper original source: International Journal Of Industrial Organization. 59 127-189

APA: Brito D; Osório A; Ribeiro R; Vasconcelos H (2018). Unilateral effects screens for partial horizontal acquisitions: The generalized HHI and GUPPI. International Journal Of Industrial Organization, 59(), 127-189. DOI: 10.1016/j.ijindorg.2018.03.005

Article's DOI: 10.1016/j.ijindorg.2018.03.005

Entity: Universitat Rovira i Virgili

Journal publication year: 2018

Publication Type: Journal Publications