The efficiencies defence in merger cases: implications of alternative standards
AbstractWe compare alternative interpretations of the efficiencies defence, provided under Canadian competition law, for mergers found likely to lessen competition substantially. We find the respective percentage reductions in long-run marginal cost required for a profitable merger to satisfy the total surplus, price, and two weighted surplus standards, given pre-merger market structure. We find that when efficiency spillovers are low and markets are concentrated, the cost reduction required to satisfy the price standard is over four times higher than is required for a profitable, total-surplus-increasing merger and the cost reductions required to satisfy the weighted surplus standards are nearly twice as high.
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 Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 33 (2000)
Issue (Month): 2 (May)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jarig Sinderen & Ron Kemp, 2008. "The Economic Effect Of Competition Law Enforcement: The Case Of The Netherlands," De Economist, Springer, vol. 156(4), pages 365-385, December.
- Rigoberto A. López & Elena López & Carmen Liron-Espana, 2009. "When is concentration beneficial? Evidence from U.S. manufacturing," Alcamentos 0901, Universidad de Alcalá, Departamento de Economía..
- Joseph Clougherty & Anming Zhang, 2005.
"Export orientation and domestic merger policy: theory and some empirical evidence,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 38(3), pages 778-806, August.
- Joseph A. Clougherty & Anming Zhang, 2004. "Export Orientation and Domestic Merger Policy: Theory and Some Empirical Evidence," CIG Working Papers SP II 2004-10, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
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.