An Empirical Analysis of Canadian Merger Policy

R S Khemani and Daniel M Shapiro

Journal of Industrial Economics, 1993, vol. 41, issue 2, 161-77

Abstract: The merger provisions of the new Competition Act (1986) brought significant changes to Canada's merger environment but little is known regarding the application of the provisions by the Bureau of Competition Policy. In this paper, the decision-making process has been approximated by an ordered probit model. The estimated ordered probit results indicate that the Director of Investigation and Research has applied the merger provisions in a consistent manner and in accordance with modern industrial organization economics. Although market share and concentration are important determinants of decisions, they are not the only factors considered. Copyright 1993 by Blackwell Publishing Ltd.

Date: 1993
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