Honor: 2022 RIEF Best Paper Prize in International Trade for Felix Montag
In his paper, Felix Montag studies how foreign product entry changes the consumer welfare and domestic employment effects of mergers. He sets up a structural model to assess how a product market merger affects rival product entry, consumer welfare, and domestic employment. Felix uses detailed data on household appliance purchase data and production locations to apply this model to the merger the impact of Whirlpool’s acquisition of Maytag in the U.S. appliance market and compares it to the impact of a counterfactual acquisition by a foreign buyer with no prior presence in the U.S. market. He finds that although an acquisition by the domestic rival is always worse for consumers, it also preserves more domestic jobs. The methodology developed in this paper can be used to identify mergers in which employment effects from offshoring are of first order importance.
“We are most proud of this success, and we wish Felix every success for his new position as Assistant Professor at the Tuck School of Business at Dartmouth, which he accepted to start in August”, says MGSE Placement Officer Prof. Davide Cantoni. “This is also a success for our MGSE. For the second time, one of our alumni wins the RIEF Best Paper Prize. We see this as a confirmation of the good work we have been doing over the past years in training economists and prepare them to seek academic employment in the international market.”