Merger Policy to Promote Global Players? A Simple Model

Andreas Haufler and Søren Nielsen

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: We use a simple framework where firms in two countries serve their respective domestic markets and a world market to analyze under which conditions cost-reducing mergers will be beneficial for the merging firms, the home country, and the world as a whole. For a national merger, the policies enacted by a national merger authority tend to be overly restrictive from a global efficiency perspective. In contrast, all international mergers that benefit the merging firms will be cleared by either a national or a regional regulator, and this laissez-faire approach is also globally efficient. Finally, we derive the properties of the endogenous merger equilibrium.

Keywords: merger policy; international trade (search for similar items in EconPapers)
JEL-codes: F13 H77 L41 (search for similar items in EconPapers)
Date: 2005-07
New Economics Papers: this item is included in nep-com, nep-ind and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://epub.ub.uni-muenchen.de/666/1/Haufler_666.pdf (application/pdf)

Related works:
Journal Article: Merger policy to promote 'global players'? A simple model (2008)
Working Paper: Merger policy to promote ’global players’? A simple model (2008)
Working Paper: Merger Policy to Promote ‘Global Players’? A Simple Model (2005)
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:lmu:muenec:666

Access Statistics for this paper

More papers in Discussion Papers in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg (tamilla.benkelberg@econ.lmu.de).