The effects of mergers on product positioning: evidence from the music radio industry

Sweeting, Andrew

doi:10.1111/j.1756-2171.2010.00104.x

Cited by 154 publications

(81 citation statements)

References 26 publications

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“…Chisholm et al (2006) study first-run movie theaters in Boston and find that theater pairs under common ownership tend to make more similar programming choices. Sweeting (2006Sweeting ( , 2010 investigates how common ownership affects the programming and listenership of contemporary music radio stations, and he finds that common ownership in the same market leads to more differentiation and an increase in listenership. However, he also finds that common ownership of stations in different markets is associated with playlist homogenization, consistent with economies of scale and scope in offering similar programming in different markets.…”

Section: Company Factorsmentioning

confidence: 99%

An Empirical Analysis of Assortment Similarities Across U.S. Supermarkets

2010

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An empirical analysis of assortment similarities across U.S. supermarketsHwang, M.; Bronnenberg, Bart; Thomadsen, R. General rightsCopyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.-Users may download and print one copy of any publication from the public portal for the purpose of private study or research -You may not further distribute the material or use it for any profit-making activity or commercial gain -You may freely distribute the URL identifying the publication in the public portal Take down policyIf you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim. T his paper examines pairwise assortment similarities at U.S. supermarkets to understand how assortment composition and size are related to underlying factors that describe local store clientele, local competitive structure, and the retail outlets' characteristics. The top-selling items, which cumulatively make up 50% of sales, are sold at nearly every store, but other items are viewed as optional. We find that, within states, supermarkets owned by the same chain carry similar assortments and that the composition of their clientele and the presence of competing stores have effects on assortment similarity that are an order of magnitude smaller than ownership structure. In contrast, we find that, across states, supermarkets owned by the same chain do version their assortment. We explain this difference using extant work on the minimal efficient scale of supermarkets and on local demand effects. Furthermore, we investigate the distribution and role of regional brands. We find that regional brands are primarily distributed by small regional chains or independent stores. "Value" regional brands are primarily distributed by supermarket firms without store brands, whereas the distribution of "premium" regional brands is unrelated to the presence of store brands. We discuss our findings in the context of modeling assortment decisions and manufacturers designing distribution policies.

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Section: Company Factorsmentioning

confidence: 99%

An Empirical Analysis of Assortment Similarities Across U.S. Supermarkets

2010

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“…Scholars examine how media firms adjust prices in response to changes in competition (e.g., Chandra and CollardWexler 2009). A few studies also study how media firms change their content to do better targeting as a result of competition (e.g., George and Waldfogel 2006;Chandra 2009) or consolidation (e.g., Berry and Waldfogel 2001;George 2002George , 2007Sweeting 2010). Our study of Craigslist's entry differs in that competition is intensified mostly on the classified-ad side of the market.…”

Section: Introductionmentioning

confidence: 99%

Technology Shocks in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers

Seamans

Zhu

2011

SSRN Journal

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We investigate the impact of Craigslist, a website providing classified-advertising services, on local newspapers' pricing strategies. We exploit temporal and geographic variation in Craigslist's entry to show that newspapers with greater reliance on classified-ad revenue experience a larger drop in classified-ad rates after Craigslist's entry. The impact of Craigslist's entry propagates to the subscriber and display-ad sides of these newspapers: Relative to other newspapers, they experience an increase in subscription prices, a decrease in circulation shares, and a decrease in display-ad rates. These findings are consistent with a model that treats the newspaper industry as a three-sided market.

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“…While studies such as Gugler and Siebert (2007) and Dafny (2009) apply instrumental variable methods, other studies use difference-in-difference estimation and employ propensity score matching to establish causality in the evaluation of mergers (see Egger and Hahn (2010) and Ornaghi (2009), among many others). The list of prominent empirical merger contributions is long and includes studies such as Dockner and Gaunersdorfer (2001), Mueller (1980, Goldberg (1973), Baldwin and Gorecki (1990), Ravenscraft and Scherer (1987), Gugler et al (2003), Sweeting (2010), Nevo (2001), andCiliberto, Williams, andZhang (2016), among many others.…”

Section: Introductionmentioning

confidence: 99%

Heterogeneous Merger Impacts on Competitive Outcomes

Siebert

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Mergers realize heterogeneous competitive effects on profits, production, and prices. To date, it is unclear whether differential merger outcomes are caused mostly by firms' technology or product market attributes. Furthermore, empirical merger studies conventionally assume that, conditional on regressors, the impact of mergers on outcomes is the same for every firm. We allow the merger responses to vary across firms, even after controlling for regressors, and apply a random-coefficient or heterogeneous treatment effect model (in the context of Angrist and Krueger (1999), Heckman, Urzua, and Vytlacil (2006), and Cerulli (2012)). Based on a comprehensive dataset on the static random access memory industry, we find that firms' postmerger output further increases (and postmerger price further declines) if merging firms are more efficient, operate in more elastic product markets, are more innovative, and acquire knowledge in technological areas that are relatively unexplored to themselves. A further interesting insight is that product market characteristics cause stronger postmerger outcome heterogeneities than do technology market characteristics. We also find that the postmerger effects accounting for heterogeneities differ greatly from those that consider homogeneous postmerger outcome effects. Our estimation results provide evidence that ignoring heterogeneous outcome effects can result in heterogeneity bias, just as ignoring premerger heterogeneities can lead to selectivity bias. Terms of use: Documents inJEL-Codes: L110, L130, L520, O310, O320, O380.Keywords: heterogeneous treatment effects, horizontal mergers, market power effects, merger evaluation, premerger heterogeneity, postmerger heterogeneity. Ralph Siebert

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The effects of mergers on product positioning: evidence from the music radio industry

Cited by 154 publications

References 26 publications

An Empirical Analysis of Assortment Similarities Across U.S. Supermarkets

An Empirical Analysis of Assortment Similarities Across U.S. Supermarkets

Technology Shocks in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers

Heterogeneous Merger Impacts on Competitive Outcomes

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