Structural Remedies in Merger Regulation in a Cournot Framework
AbstractTo prevent possible abuse of market power, an antitrust agency can force merging firms to divest some of their assets. The divested assets can be sold via auction either to existing competitors or to a new entrant. Divestiture of assets extends the range of parameters when a merger satisfies a consumer surplus standard and should be approved. If the agency takes a more active stance toward the selection of a purchaser of the assets (e.g. to exclude an incumbent from the auction), then it could lead to a favourable outcome for consumers and merging firms.
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Bibliographic InfoPaper provided by Centre for Competition Policy, University of East Anglia in its series Working Papers with number 07-16.
Length: 23 pages
Date of creation: Aug 2007
Date of revision:
Merger regulation; structural remedies; divestiture;
Other versions of this item:
- Medvedev, A., 2004. "Structural Remedies in Merger Regulation in a Cournot Framework," Discussion Paper 2004-006, Tilburg University, Tilburg Law and Economic Center.
- Andrei Medvedev, 2004. "Structural remedies in merger regulation in a Cournot framework," CERGE-EI Working Papers wp229, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-16 (All new papers)
- NEP-COM-2007-09-16 (Industrial Competition)
- NEP-IND-2007-09-16 (Industrial Organization)
- NEP-LAW-2007-09-16 (Law & Economics)
- NEP-MIC-2007-09-16 (Microeconomics)
- NEP-REG-2007-09-16 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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