Staples and Office Depot: An Event-Probability Case Study

Staples and Office Depot: An Event-Probability Case Study Investors in financial markets bet their dollars on whether amerger will raise or lower prices. Below, we apply an event-probability methodology to the proposed merger between Staples and Office Depot, which was challenged by the FTC and eventually withdrawn. In addition to a time-series regression,we also look at the effect of the merger in specific event windows. We find highlysignificant returns to the only rival firm in the relevant market. We estimate theprice effect of the merger and find it highly consistent with independent estimates. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Staples and Office Depot: An Event-Probability Case Study

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Publisher
Springer Journals
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1012548125974
Publisher site
See Article on Publisher Site

Abstract

Investors in financial markets bet their dollars on whether amerger will raise or lower prices. Below, we apply an event-probability methodology to the proposed merger between Staples and Office Depot, which was challenged by the FTC and eventually withdrawn. In addition to a time-series regression,we also look at the effect of the merger in specific event windows. We find highlysignificant returns to the only rival firm in the relevant market. We estimate theprice effect of the merger and find it highly consistent with independent estimates.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 3, 2004

References

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