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In an industry where regulated firms interact with unregulated suppliers, we investigate the welfare effects of a merger between regulated firms when cost synergies are uncertain before the merger and their realization becomes private information of the merged firm. The optimal merger policy...
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contribute, on average, 20% of the total merger value added. Moreover, we find that multimarket efficiency gains dominate …
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We consider antitrust enforcement within the adversarial model used by the United States. We show that, under the adversarial system, the Antitrust Authority may try to prohibit mergers also in those cases in which litigation is inefficient. Even if market concentration and technological...
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There are legal grounds to hear competitors in merger control proceedings, and competitor involvement has gained significance. To what extent this is economically sensible is our question. The competition authority applies some welfare standard while the competitor cares about its own profit. In...
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post-merger R&D efforts (including lower expenditure). SIEIC is distinct from the mainstream unilateral effects theory of … analysis lies a fundamental question of competition theory: under what conditions can variations of existing economic models be … applied in merger cases? This paper is divided into three sections. In Section I, the SIEIC theory of harm is described and …
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