Nocke, Volker; Whinston, Michael D. - In: American Economic Review 103 (2013) 2, pp. 1006-33
We analyze the optimal policy of an antitrust authority towards horizontal mergers when merger proposals are endogenous … pre-merger market share. The optimal policy is a response to a bias in firms' proposal incentives: firms always propose a … larger merger when it is better for consumers than a smaller one, but sometimes will propose the larger one even when it is …