A Political Economy Model of Merger Policy in International Markets
AbstractThis paper looks at the political economy of merger policy under autarky and in international markets. We assume that merger policy is decided by antitrust authorities (whose objective is to maximize welfare) but can be influenced by governments, which are subject to lobbying by the firms (be they insiders or outsiders to the merger). We argue that political economy distortions may explain some of the recently observed merger policy conflicts between authorities and politicians, as well as between institutions belonging to different countries. We illustrate our analysis with applications motivated by recent merger cases, which have been widely debated in the international press.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6894.
Date of creation: Jun 2008
Date of revision:
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Other versions of this item:
- Massimo Motta & Michele Ruta, 2012. "A Political Economy Model of Merger Policy in International Markets," Economica, London School of Economics and Political Science, vol. 79(313), pages 115-136, 01.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-05 (All new papers)
- NEP-CDM-2008-07-05 (Collective Decision-Making)
- NEP-COM-2008-07-05 (Industrial Competition)
- NEP-IND-2008-07-05 (Industrial Organization)
- NEP-POL-2008-07-05 (Positive Political Economics)
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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