Luke M. Froeb

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In this paper, we examine price movements over time around the collapse of a bid-rigging conspiracy. While the mean decreased by sixteen percent, the standard deviation increased by over two hundred percent. We hypothesize that conspiracies in other industries would exhibit similar characteristics and search for “pockets” of low price variation as(More)
From bidding data, we estimate the underlying value distribution for Forest Service timber. We nd that bidder values decrease $2=mbf (thousand board feet) with each mile from the tract and that small rms (less than 500 employees) have values that are $72=mbf lower than large rms. The empirical value distribution is used to simulate various hypothetical(More)
We study mergers among firms that compete by simultaneously choosing price and location. The merged firm moves its two products away from each other to reduce cannibalization, and the nonmerging firms move their products in between the merging firm’s products. Post-merger repositioning increases product variety, which benefits consumers, but repositioning(More)
We investigate the relationship in Bertrand oligopoly between the price effects of mergers absent synergies, and the rates at which merger synergies are passed through to consumers in the form of lower prices. We find that the demand conditions that cause a merger to result in large price increases absent synergies also cause the pass-through rate to be(More)
In recent years there have been significant developments in the use of empirical economic methods to study the likely competitive effects of mergers.1 These developments have been shaped by the increased use of unilateral effects analyses by the competition authorities, as is expressed in part in the 1997 Horizontal Merger Guidelines. Such analyses evaluate(More)
The ALM is a logit model, which is a particular random utility choice model. In that broad class of models, each consumer makes a single choice from a “choice set,” generally consisting of certain “inside goods” and an “outside good,” reflecting the choice of “none of the above.” While similar in concept, the inside goods may be more or less inclusive than(More)
The past decade has witnessed remarkable developments in the quantitative analysis of horizontal mergers. Increases in computing power and the quantity and quality of data available have substantially reduced the costs of estimating demand systems using econometric methods. Good estimates of retail demand elasticities can make an important contribution to(More)