Evaluating Mergers and Divestitures: A Casino Case Study
| العنوان: | Evaluating Mergers and Divestitures: A Casino Case Study |
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| المؤلفون: | Jeremy Sandford, F. David Osinski |
| المصدر: | The Journal of Law, Economics, and Organization. 37:239-277 |
| بيانات النشر: | Oxford University Press (OUP), 2020. |
| سنة النشر: | 2020 |
| مصطلحات موضوعية: | Organizational Behavior and Human Resource Management, Economics and Econometrics, Public economics, 05 social sciences, Control (management), Commission, Frequent use, Incentive, 0502 economics and business, Asset (economics), Business, Endogeneity, 050207 economics, Consumer welfare, Law, Divestment, 050205 econometrics |
| الوصف: | Despite frequent use in practice, merger remedies receive little attention in the economics literature. We analyze the 2013 merger of two casino operators and the subsequent divestiture of one St. Louis casino. Using public data from the Missouri Gaming Commission, we employ a difference-in-difference framework with other Missouri casinos as the control group to estimate separate effects of the merger and divestiture on each St. Louis casino. Results indicate the merged firm benefited from efficiencies, resulting in lower prices and higher quantity; however, the divested casino performed worse than before the merger. Synthetic control estimates confirm these results. This study raises questions about whether to assess remedies by the performance of the divested asset or the consumer welfare of the entire merger. It also raises questions regarding remedy endogeneity: do firms face incentives to offer declining assets? Both have applicability beyond this case, supporting the need for further research. (JEL L1, L4) |
| تدمد: | 1465-7341 8756-6222 |
| DOI: | 10.1093/jleo/ewaa013 |
| URL الوصول: | https://explore.openaire.eu/search/publication?articleId=doi_________::52a10c5464cdc5acb8a35088796e05e1 https://doi.org/10.1093/jleo/ewaa013 |
| Rights: | OPEN |
| رقم الانضمام: | edsair.doi...........52a10c5464cdc5acb8a35088796e05e1 |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 14657341 87566222 |
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| DOI: | 10.1093/jleo/ewaa013 |