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Monopoly in the UK: What Determines Whether the MMC Finds against the Investigated Firms?

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Author Info
Davies, Stephen W
Driffield, Nigel L
Clarke, Roger

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Abstract

This paper draws on data from 73 UK Monopolies and Mergers Commission reports on monopoly between 1973 and 1995. It shows that there is a roughly two in three chance that the Commission will come to an adverse conclusion against the investigated firms in a given case. 75-80% of decisions can be explained purely in terms of the market share of the leading firm and knowledge of the broad nature of the alleged anti-competitive practice. An adverse finding is most likely in cases involving exclusive dealing, and least likely where other vertical restraints are involved. Copyright 1999 by Blackwell Publishing Ltd

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Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 47 (1999)
Issue (Month): 3 (September)
Pages: 263-83
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Handle: RePEc:bla:jindec:v:47:y:1999:i:3:p:263-83

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  2. Schinkel, M.P. & Tuinstra, J., 2004. "Imperfect Competition Law Enforcement," CeNDEF Working Papers 04-07, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
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  3. Marcos Avalos & Rafael E. De Hoyos, 2008. "An Empirical Analysis of Mexican Merger Policy," Review of Industrial Organization, Springer, vol. 32(2), pages 113-130, March. [Downloadable!] (restricted)
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  4. Bergman, Mats A. & Jakobsson, Maria & Razo, Carlos, 2003. "An Econometric Analysis of the European Commission's Merger Decisions," Working Paper Series 2003:6, Uppsala University, Department of Economics. [Downloadable!]
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