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dc.titleResearch Insights: How Do Changes in Brand Ownership Affect Competition and Consumer Welfare?
dc.contributor.authorAlviarez, Vanessa
dc.contributor.authorMayer, Thierry
dc.contributor.authorHead, Keith
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.coverageNorth America
dc.coverageEurope
dc.date.available2023-08-29T00:08:00
dc.date.issue2023-08-29T00:08:00
dc.description.abstractChanges in brand ownership resulting from cross-border mergers and acquisitions impact competition and consumer welfare. Foreign acquisitions of local brands often lead to an increase in cost or a decline in appeal for the acquired brand, with limited gains in efficiencies. However, the accompanying rise in market power has translated into higher profits for the majority of brand-acquiring firms. Pro-competitive policies in the United States and European Union that required divestitures in the beer industry as a condition for merger approval led to significant consumer savings. Similar policies in South America would have reduced consumer prices by 18%.
dc.format.extent4
dc.identifier.doihttp://dx.doi.org/10.18235/0005099
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Research-Insights-How-Do-Changes-in-Brand-Ownership-Affect-Competition-and-Consumer-Welfare.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Perspectivas-de-investigacion-Como-influyen-los-cambios-en-la-propiedad-de-las-marcas-en-la-competencia-y-el-bienestar-de-los-consumidores.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectProcurement
dc.subjectCompetitiveness
dc.subjectSaving
dc.subjectIndustry
dc.subjectRegulation
dc.subjectSmall Business
dc.subjectBranding
dc.subjectFirms Dynamics
dc.subject.jelcodeF12 - Models of Trade with Imperfect Competition and Scale Economies • Fragmentation
dc.subject.jelcodeF23 - Multinational Firms • International Business
dc.subject.jelcodeF61 - Microeconomic Impacts
dc.subject.jelcodeK21 - Antitrust Law
dc.subject.jelcodeL13 - Oligopoly and Other Imperfect Markets
dc.subject.keywordsMultinationals;Oligopoly;Markups;Firm effects;Concentration;Frictions;Mergers and acquisitions;compettion policy
dc.typeCatalogs and Brochures
idb.identifier.pubnumberIDB-CB-00808
idb.operationBK-C1102
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