Demand Estimation and Horizontal Merger Simulation: The Case of Coca-Cola and AdeS in Argentina

DOI:  https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.12883

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Published: Jan 19, 2023
Issue: Vol. 25 No. 2 (2022)
Section Articles


Keywords: Nested logit model , Demand estimation , Horizontal merger simulation , Argentina , RTD juices Modelo logit anidado , Estimación de demanda , Simulación de Concentraciones horizontales , Argentina , Jugos RTD Modelo logit aninhado , Estimativa de demanda , Simulação de fusões horizontais , Argentina , Sucos RTD

Main Article Content

Authors

Leandro Benítez Frontier Economics y Barcelona School of Economics.
Germán Coloma Universidad del cema (Argentina).
Abstract

This paper applies a methodology of demand estimation based on a nested logit model in which different products belong to different ‘nests’. Based on the estimated parameters, it is possible to simulate the competitive effects of mergers that involve two or more products and obtain a prediction about the possible price and quantity changes induced by such fusions. The proposed method is applied to evaluate the expected effects of a horizontal merger between Coca-Cola and AdeS in the Argentine market of ready-to-drink (RTD) juices.

How to Cite
Benítez, L., & Coloma, G. (2023). Demand Estimation and Horizontal Merger Simulation: The Case of Coca-Cola and AdeS in Argentina. Revista Economía Del Rosario, 25(2), 1–22. https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.12883
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