- Elgar original reference
Edited by Manfred Neumann and Jürgen Weigand
Chapter 2: Efficiency versus Market Power through Mergers
2 Efﬁciency versus market power through mergers Dennis C. Mueller 1 Introduction The 20th century began with the ﬁrst great merger wave in the United States and the United Kingdom. It ended with another great wave that engulfed virtually every developed country in the world. As beﬁts a global economy, many of the mergers taking place at the end of the century were cross-border deals. In between these two great waves there were three additional waves in the United States at the end of the 1920s, 1960s and 1980s. These mergers have obviously transformed the companies involved in them. In 1950, Philip Morris was a relatively non-leading, specialized company in the tobacco industry. Later it became the largest cigarette producer in the world, thanks to its introduction of the Marlboro brand in the mid-1950s, and the world’s leading retail food manufacturer, thanks to its many acquisitions over the years, including in particular its acquisitions of food company giants Kraft Foods and General Foods. Other than changing the shapes and sizes of the merging companies, what have been the effects of the many thousands of mergers that have occurred in the United States and increasingly in all corners of the globe and, in particular, what have been their effects on efﬁciency and market power? This would seem to be the most obvious and important question to ask about mergers both with respect to our understanding of the merger process and for the design of merger policy. Unfortunately, after...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.