Economics at your fingertips  

Competitors in merger control: Shall they be merely heard or also listened to?

Thomas Giebe () and Miyu Lee ()
Additional contact information
Miyu Lee: Klarna Bank AB

European Journal of Law and Economics, 2020, vol. 49, issue 3, No 4, 453 pages

Abstract: Abstract There are legal grounds to hear competitors in merger control proceedings, and competitor involvement has gained significance. To what extent this is economically sensible is the focus of our game-theoretic analysis. The competition authority applies some welfare standard while the competitor cares about its own profit. In expectation, there is neither a pure conflict nor a complete alignment of interest. We distinguish hard and soft information and ask whether hearing the competitor might convey valuable but non-verifiable information to the authority. We identify a case where, based on the authority’s verifiable information, the authority’s decision is improved by following the competitor’s selfish but non-verifiable communication. We argue that the practical relevance of this constellation is very limited, especially so under a consumer welfare standard. Thus, non-verifiable information should mostly be ignored. Complementary to our analysis, we provide empirical data of competitor involvement in EU merger cases and give an overview of the legal discussion in the EU and US.

Keywords: Merger; Antitrust; European Commission; Signaling; Efficiency; Competitors; Game theory (search for similar items in EconPapers)
JEL-codes: G34 K21 L4 C73 L2 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Competitors In Merger Control: Shall They Be Merely Heard Or Also Listened To? (2019) Downloads
Working Paper: Competitors In Merger Control: Shall They Be Merely Heard Or Also Listened To? (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1007/s10657-020-09649-3

Access Statistics for this article

European Journal of Law and Economics is currently edited by Jürgen Georg Backhaus, Giovanni B. Ramello and Alain Marciano

More articles in European Journal of Law and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2020-12-22
Handle: RePEc:kap:ejlwec:v:49:y:2020:i:3:d:10.1007_s10657-020-09649-3