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STICERD Industrial Organisation Seminars

Mergers, Foreign Competition, and Jobs: Evidence from the U.S. Appliance Industry

Felix Montag (Dartmouth)

Monday 20 May 2024 15:00 - 16:30

Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, in-person seminars are open to the public.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.


About this event

Policy choices often entail trade-offs between workers and consumers. I assess how foreign competition changes the consumer welfare and domestic employment effects of a merger. I construct a model accounting for demand responses, endogenous product portfolios, and employment. I apply this model to Whirlpool's acquisition of Maytag in the household appliance industry. I compare the observed acquisition to a counterfactual one by a foreign buyer. While Whirlpool's acquisition decreased consumer welfare by $230 million annually, it preserved 900 domestic jobs. Therefore, these jobs need to be worth above $260,000 annually for the domestic employment effects to offset the consumer harm.

Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, in person in SAL 3.05, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Sadia Ali: s.ali43@lse.ac.uk.

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