Settlement in Merger Cases: Remedies and Litigation
AbstractThis paper performs a pre-trial settlement analysis for the negotiation of asset divestitures in merger control cases. Taking into account the asymmetric information between the competition agency and the merging firms concerning the true competition impact of the merger, we examine the impact on the likelihood of settlement divestiture and the divestiture amount in equilibrium of various factors, such as the transfer rate of the merger’s cost savings, the severity of the appeal court, as well as the bargaining power of the merging partners in the sale of the divested assets.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2008-10.
Length: 24 pages
Date of creation: 2008
Date of revision:
out-of-court settlement; merger control; divestitures; asymmetric information;
Find related papers by JEL classification:
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-29 (All new papers)
- NEP-BEC-2008-04-29 (Business Economics)
- NEP-COM-2008-04-29 (Industrial Competition)
- NEP-CTA-2008-04-29 (Contract Theory & Applications)
- NEP-IND-2008-04-29 (Industrial Organization)
- NEP-LAW-2008-04-29 (Law & Economics)
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- Patrice Bougette, 2011. "Négociation d'engagements en matière de concentrations : une perspective d'économiste," Post-Print, HAL halshs-00580669, HAL.
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