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Access regulation and cross-border mergers: Is international coordination beneficial?

Author

Listed:
  • Lommerud, Kjell Erik

    (University of Bergen, Department of Economics)

  • Olsen, Trond E.

    (Department of Finance and Management Science, Norwegian School of Economics and Business Administration)

  • Straume, Odd Rune

    (University of Bergen and Stein Rokkan Centre for Social Studies)

Abstract

The international integration of regulated markets poses new challenges for regulatory policy. One question is the implications that the overall international regulatory regime will have for cross-border and/or domestic merger activity. In particular, do non-coordinated policies stimulate cross-border mergers that are overall inefficient, and is this then an argument for international coordination of such policies? The paper addresses this issue in a setting where firms must have access to a transportation network which is controlled by national regulators. The analysis reveals that while non-coordinated regulatory policies may induce cross-border mergers (by allowing the firms in question to play national regulators out against each other), this can nevertheless be overall welfare enhancing compared to market outcomes under coordinated regulation.

Suggested Citation

  • Lommerud, Kjell Erik & Olsen, Trond E. & Straume, Odd Rune, 2005. "Access regulation and cross-border mergers: Is international coordination beneficial?," Working Papers in Economics 13/05, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2005_013
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Access regulation; Endogenous merger; Policy coordination;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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