The Failing Firm Defense
AbstractThis paper evaluates the welfare consequences of the failing firm defense (FFD) in the EU and U.S. merger laws. To this end, I combine an oligopoly model with an 'endogenous valuations' auction model. The FFD is shown to work reasonably well for consumers unless small firms are too small. The FFD may, however, lead to total surplus losses, due to a 'least danger to competition' (LDC) condition which favors small, and thus possibly inefficient, firms. It is also shown that, in a multi-firm setting, the FFD increases the incentive for predation only when the assets are industry-specific. Copyright Blackwell Publishing Ltd. 2005.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal The Journal of Industrial Economics.
Volume (Year): 53 (2005)
Issue (Month): 2 (06)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Norbäck, Pehr-Johan & Persson, Lars, 2007. "Globalization and Profitability of Cross-border Mergers & Acquisitions," CEPR Discussion Papers 6102, C.E.P.R. Discussion Papers.
- Patrice Bougette & Florent Venayre, 2008.
"Contrôles a priori et a posteriori des concentrations : comment augmenter l'efficacité des politiques de concurrence,"
Revue d'économie industrielle,
De Boeck Université, vol. 0(1), pages 9-40.
- Patrice Bougette & Florent Venayre, 2008. "Contrôles a priori et a posteriori des concentrations : comment augmenter l'efficacité des politiques de concurrence ?," Post-Print halshs-00463953, HAL.
- Alessandro Fedele & Massimo Tognoni, 2010.
"Failing Firm Defence With Entry Deterrence,"
Bulletin of Economic Research,
Wiley Blackwell, vol. 62(4), pages 365-386, October.
- A. Fedele & M. Tognoni, 2006. "Failing Firm Defense with Entry Deterrence," Working Papers 562, Dipartimento Scienze Economiche, Universita' di Bologna.
- Alessandro Fedele & Massimo Tognoni, 2006. "Failing Firm Defense with Entry Deterrence," Working Papers 20061002, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica, revised Oct 2006.
- Patrice Bougette & Florent Venayre, 2008. "ContrÃ´les a priori et a posteriori des concentrations : comment augmenter l'efficacitÃ© des politiques de concurrence ?," Working Papers 245031, Institut National de la Recherche Agronomique, France.
- Mason, Robin & Weeds, Helen, 2013.
"Merger policy, entry, and entrepreneurship,"
European Economic Review,
Elsevier, vol. 57(C), pages 23-38.
- Beschorner, Patrick Frank Ernst, 2008. "Do Consumers Benefit from Concentration in the New Economy? A Review of Google's Mergers, Acquisitions, and Arrangements," ZEW Discussion Papers 08-121, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.