Monopoly in the UK: What Determines whether the MMC finds against the Investigated Firms?S.W. Davies, Nigel L. Driffield () and Roger Clarke University of East Anglia - Economics Research Centre from Economics Research Centre, University of East Anglia, School of Economics and Social Studies Abstract: This paper draws on data from 73 UK Monopolies and Mergers Commission reports on monopoly between 1973 and 1995. It shows that there is a roughly two in three chance that the Commission will come to an adverse conclusion against the investigated firms in a given case. although the underlying philosophy of UK policy in this area has always been based on a case-by-case approach (in which precedent plays little part), the model demonstrates that a significant majority of MMC decisions are predictable using a very simple probit model, based on standard, readily observable characteristics. Specifically, 75-80% of decisions can be explained purely in terms of the market share of the leading firm (but not those f the second and third ranked firms), and knowledge of the broad nature of the alleged anti-competitive practice. An adverse finding is most likely in cases involving exclusive dealing, and least likely where other vertical restraints are involved. Keywords: MONOPOLIES; MARKET STRUCTURE; MERGERS (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:fth:eanerc:9808 Access Statistics for this paper More papers in University of East Anglia - Economics Research Centre from Economics Research Centre, University of East Anglia, School of Economics and Social Studies |
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