We study a market in which goods are produced under low marginal costs with a poor degree of substitutability among products. In this environment we ran an experiment to explain why prices are interdependent even when preferences are independent. We compare our results to previous theoretical...

This paper proposes a cross-border M&A model with financially constrained owners in which the identity of the buyer and seller can be determined. We show that policies blocking foreign acquisitions to protect the domestic industry can be counterproductive. Foreign acquisition can increase the...

We discuss what lessons market participants and regulators might draw from ongoing disputes. Per Hellström & Thomas Kramler (DG Comp)

The current patent environment’s stress on competition and innovation has caused several detrimental market effects. Ilene K. Gotts (Wachtell Lipton) & Scott A. Sher (Wilson Sonsini)

The current fining practices in single-firm conduct cases rest on shaky grounds and are potentially harmful. Benoît Durand (RBB Economics) & Andreas P. Reindl (Leuphana University)

This paper applies an intuitive approach based on stock market data to a unique dataset of large concentrations during the period 1990–2002 to assess the effectiveness of European merger control. The basic idea is to relate announcement and decision abnormal returns. Under a set of four...

When firms' research can lead to potentially harmful innovations, public intervention may thwart their incentives to undertake research by reducing its expected profitability (average deterrence) and may guide the use of innovation (marginal deterrence). We compare four policy regimes: laissez...

The precise significance of innovation in EU competition law has remained, at best, opaque. Paul Lugard & David Cardwell (Baker Botts)

We show how observed product margins may be used in lieu of an observed market elasticity to calibrate parameters for two commonly used demand forms: the Almost Ideal Demand System (AIDS) and the multinomial logit. This technique is useful for antitrust practitioners interested in simulating the...

Law enforcement by regulatory authorities on complaints may replicate not only advantages but also disadvantages of both public and private enforcement. In Russian antitrust enforcement there are strong incentives to open investigations on almost every complaint. The increasing number of...