Publication
Measuring market concentration in the luxury sector
| Summary: | This study examines whether M&A drives excessive concentration in the luxury sector compared to the technology sector, using a Difference-in-Differences (DiD) methodology. Metrics such as the Herfindahl-Hirschman Index (HHI) and Concentration Ratios (CR) are analyzed for the top 100 firms in both sectors (2019–2023). Results show M&A has no significant impact on overall concentration (HHI), but CR4 indicates increased dominance of top luxury firms. Findings highlight the strategic nature of M&A in luxury, offering insights for industry stakeholders and policymakers. |
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| Main Authors: | Wang, Xinyi Chen |
| Subject: | Mergers and Acquisitions Market concentration Herfindahl-Hirschman Index Luxury sector Technology sector Difference-in-Differences |
| Year: | 2025 |
| Country: | Portugal |
| Document type: | master thesis |
| Access type: | embargoed access |
| Associated institution: | Universidade Nova de Lisboa |
| Language: | English |
| Origin: | Repositório Institucional da UNL |
| Summary: | This study examines whether M&A drives excessive concentration in the luxury sector compared to the technology sector, using a Difference-in-Differences (DiD) methodology. Metrics such as the Herfindahl-Hirschman Index (HHI) and Concentration Ratios (CR) are analyzed for the top 100 firms in both sectors (2019–2023). Results show M&A has no significant impact on overall concentration (HHI), but CR4 indicates increased dominance of top luxury firms. Findings highlight the strategic nature of M&A in luxury, offering insights for industry stakeholders and policymakers. |
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