Abstract
Investors in financial markets bet their dollars on whether amerger will raise or lower prices. Below, we apply an event-probability methodology to the proposed merger between Staples and Office Depot, which was challenged by the FTC and eventually withdrawn. In addition to a time-series regression,we also look at the effect of the merger in specific event windows. We find highlysignificant returns to the only rival firm in the relevant market. We estimate theprice effect of the merger and find it highly consistent with independent estimates.
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Warren-Boulton, F.R., Dalkir, S. Staples and Office Depot: An Event-Probability Case Study. Review of Industrial Organization 19, 467–479 (2001). https://doi.org/10.1023/A:1012548125974
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DOI: https://doi.org/10.1023/A:1012548125974