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On the inefficiency of merger control

Oliver Gürtler () and Matthias Kräkel ()

Economics Letters, 2009, vol. 102, issue 1, 53-55

Abstract: According to the Merger Guidelines, the Antitrust Authority has to challenge an anticompetitive merger. These guidelines, however, neglect the parties' litigation costs during trial. We analyze under which circumstances these costs are so high that the agency's intervention is inefficient.

Keywords: Litigation; contest; Merger; control; Cournot; competition; Bertrand; competition (search for similar items in EconPapers)
Date: 2009
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Handle: RePEc:eee:ecolet:v:102:y:2009:i:1:p:53-55