An Analytical Approach for Policy Coordination

Luis Gautier () and Mahelet Fikru ()
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Luis Gautier: Universidad de Málaga, Departamento de Teoría e Historia Econòmica

Chapter Chapter 13 in Handbook of Merger Control and Environmental Policy, 2024, pp 245-251 from Springer

Abstract: Abstract This chapter introduces a framework for analyzing the cooperative policy setting between the merger control authority (MCA) and environmental protection agency (EPA). Currently, the United States and EU follow a noncooperative policy framework where MCA and EPA independently set policies. The model developed in this chapter identifies inefficiencies associated with noncooperative scenarios. By establishing a cooperative equilibrium, the analysis demonstrates that there exists an industry output level post-merger that maximizes joint welfare when MCA and EPA coordinate their policies. The policy implication suggests a shift toward cooperation between MCA and EPA, emphasizing the potential for welfare gains through aligned decision-making. This cooperative approach would require a reevaluation of the existing noncooperative framework and could lead to more balanced outcomes in terms of economic and environmental welfare.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:nrmchp:978-3-031-63549-6_13

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DOI: 10.1007/978-3-031-63549-6_13

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