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Brito, D., Pereira, P., Pereira, P. & Ramalho, J. J. S. (2013). Mergers, coordinated effects and efficiency in the Portuguese non-life insurance industry. International Journal of Industrial Organization. 31 (5), 554-568
D. Brito et al., "Mergers, coordinated effects and efficiency in the Portuguese non-life insurance industry", in Int. Journal of Industrial Organization, vol. 31, no. 5, pp. 554-568, 2013
@article{brito2013_1732356823084, author = "Brito, D. and Pereira, P. and Pereira, P. and Ramalho, J. J. S.", title = "Mergers, coordinated effects and efficiency in the Portuguese non-life insurance industry", journal = "International Journal of Industrial Organization", year = "2013", volume = "31", number = "5", doi = "10.1016/j.ijindorg.2013.10.001", pages = "554-568", url = "http://www.sciencedirect.com/science/article/pii/S0167718713000908" }
TY - JOUR TI - Mergers, coordinated effects and efficiency in the Portuguese non-life insurance industry T2 - International Journal of Industrial Organization VL - 31 IS - 5 AU - Brito, D. AU - Pereira, P. AU - Pereira, P. AU - Ramalho, J. J. S. PY - 2013 SP - 554-568 SN - 0167-7187 DO - 10.1016/j.ijindorg.2013.10.001 UR - http://www.sciencedirect.com/science/article/pii/S0167718713000908 AB - We evaluate the impact on market power and efficiency of a series of mergers on three Portuguese non-life insurance markets. We specify and estimate, with a panel of firm-level data, a structural model which includes: preferences, technology, and a market equilibrium condition. Firms' demand curves are not very elastic. Firms' technologies exhibit scale and scope economies and high cost efficiency scores. We find that, for the period following the mergers, there is no evidence of: (i) an increase in market power through coordinated behavior, or (ii) changes in cost efficiency levels. In addition, social welfare increased. ER -