【Macro Seminar】Mergers and Acquisitions: Market Power or Efficiency?
2025/10/09
研討會日期 : 2025-10-09
時間 : 14:30
主講人 : Dr. Filip Milosavljević
地點 : Conference Room B110
主持人 : Professor Leo Lam
演講者簡介 : Dr. Filip Milosavljević received his Ph.D. in Economics from Washington University in St. Louis in 2025. He is currently a Postdoctoral Scholar at Columbia University. His research interests are Macroeconomics, Firm Dynamics, and Economic Growth.
演講摘要 : Mergers and acquisitions (M&A) can cause large changes to industry concentration and firm productivity. I develop a general equilibrium model of imperfect competition where firms can merge with other firms to analyze the impact of M&A on industry structure, firm productivity, and aggregate outcomes. Industry consolidation is modeled through a centralized matching process that generates rich predictions about who merges with whom. I detail cases of the model that admit analytically tractable solutions and characterize the matching patterns that determine the extent of synergies, as well as the aggregate level and dispersion of markups that can be attributed to M&A. The level of concentration and the patterns of merger pairings support the view that mergers drive higher market power and, on average, do not result in large productivity-enhancing synergies. Despite this, counterfactual analysis shows that mergers tend to increase aggregate productivity, as they reduce misallocation by lowering the overall dispersion of markups, but decrease output and welfare through a higher aggregate markup. I estimate that mergers increase aggregate productivity by 1.6%, yet decrease output by 3.9%.
