accomplished by controlling mergers. We determine the optimal frequency of investigations launched by the agency, and identify … less likely that the worst mergers are deterred. Even if the worst mergers are deterred, the potential for remedies can … lead to more mergers with a negative impact to be proposed, and eventually to more decision errors by the antitrust …

Farrell and Shapiro proposed a simple test of the possible upward pricing pressure (UPP) following a merger. They … showed that the test may give false negatives, that is, indicate that a merger may not give an UPP, while a more …