We analyze the optimal policy of an antitrust authority towards horizontal mergers when merger proposals are endogenous and firms choose which of several mutually exclusive mergers to propose. The optimal policy of an antitrust authority that seeks to maximize expected consumer surplus involves...

We study optimal merger policy in a dynamic model in which the presence of scale economies implies that firms can reduce costs through either internal investment in build- ing capital or through mergers. The model, which we solve computationally, allows firms to invest or propose mergers...

In this chapter, we begin our discussion of antitrust economics by considering what many consider its most central element: its ban on "price fixing" - that is, agreements among competitors over the prices they will charge or the outputs they will produce. Indeed, the prohibition on price fixing...

We study the effects of antitrust policy in industries with continual innovation. A more protective antitrust policy may have conflicting effects on innovation incentives, raising the profits of new entrants, but lowering those of continuing incumbents. We show that the direction of the net...