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The Merger Clearance Decision Process in New Zealand: Application of a New Two-Stage Probit Model

Qing Yang () and Michael Pickford

Review of Industrial Organization, 2014, vol. 44, issue 3, 299-325

Abstract: This paper analyses empirically the factors that influence the merger decision-making process of the New Zealand Commerce Commission using discrete-choice econometric modelling. Previous studies in various countries have typically modelled this process as involving a single step, even when a formal two-step process is actually used. We apply a new approach that treats merger decision-making as a two-step process, and compare the results with those from applications of the conventional one-step and ordered probit models. We expect the new approach to avoid biases inherent in the previous models, and therefore to produce statistically superior results. Copyright Springer Science+Business Media New York 2014

Keywords: Antitrust; Competition law; Merger review; Heckman Selection; Two stage Probit model (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s11151-013-9404-x

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Handle: RePEc:kap:revind:v:44:y:2014:i:3:p:299-325