EconPapers    
Economics at your fingertips  
 

Do remedies affect the efficiency defense? An optimal merger-control analysis

Jean-Philippe Tropeano () and Andreea Cosnita-Langlais ()

PSE - Labex "OSE-Ouvrir la Science Economique" from HAL

Abstract: This paper examines the optimal use of remedies and the efficiency defense for merger control. We develop a framework in which merger efficiency gains are endogenously determined and are not observed by the Competition Authority. The possibility of an efficiency defense can push firms to design the merger better, leading to greater efficiency gains. Firms can also submit remedies to the Competition Authority: they interact with the efficiency defense, by reducing the firm's incentive to enhance efficiency. At the same time remedies improve the assessment of the merger, in particular by signaling the true level of efficiency gains. We ask to what extent it may be optimal to make use of both instruments simultaneously, and thus discuss the possibility that the Competition Agency refrain from using one of the instruments to try to improve overall merger-control performance.

Keywords: Merger remedies; Merger control; Efficiency defense (search for similar items in EconPapers)
Date: 2012-01
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00643695
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Published in International Journal of Industrial Organization, Elsevier, 2012, 30 (1), pp.58-66. ⟨10.1016/j.ijindorg.2011.05.004⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Do remedies affect the efficiency defense? An optimal merger-control analysis (2012) Downloads
Working Paper: Do remedies affect the efficiency defense? An optimal merger-control analysis (2012)
Working Paper: Do remedies affect the efficiency defense? An optimal merger-control analysis (2012)
Working Paper: Do Remedies Affect the Efficiency Defense? An Optimal Merger-Control Analysis (2012)
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: https://EconPapers.repec.org/RePEc:hal:pseose:hal-00643695

DOI: 10.1016/j.ijindorg.2011.05.004

Access Statistics for this paper

More papers in PSE - Labex "OSE-Ouvrir la Science Economique" from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2020-03-29
Handle: RePEc:hal:pseose:hal-00643695