This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Merger Remedies at the European Commission: A Multinomial Logit Analysis

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Patrice Bougette
Stéphane Turolla

Additional information is available for the following registered author(s):

Abstract

This paper aims to build and empirically evaluate a discrete choice model of merger remedies as a basis for policy analysis. The database consists of 229 merger cases accepted in Phase I or Phase II of the European merger process between 1990 and 2005. We focus on the following question: Which merging firms’ characteristics lead the European Commission to decide whether to require conditional acceptance? Although a lot of empirical studies have been carried out these last years, ours is distinguished by at least two original features. First, we explore determinanting factors of the Commission’s decisions with a neural network model differentiating cases accepted with or without remedies (either structural or behavioral). Secondly, we implement three multinomial logit models. We find that variables related to high market power lead more frequently to a remedy outcome, whatever the phase. Innovative industries such as energy, transportation and communications positively affect the probability of a behavioral remedy. Lastly, former Competition Commissioner Mario Monti’s policy appears to be pro-remedy, i.e. seeking concessions from merging parties.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://www.lameta.univ-montp1.fr/Fr/Productions/Documents/DR2006-08.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Patricia Modat)
File Format: application/pdf
File Function: First version, 2006
Download Restriction: no

Publisher Info
Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 06-08.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 28 pages
Date of creation: Sep 2006
Date of revision: Feb 2008
Handle: RePEc:lam:wpaper:06-08

Contact details of provider:
Web page: http://www.lameta.univ-montp1.fr/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Patricia Modat).

Related research
Keywords:

Other versions of this item:

References listed on IDEAS
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.:
  1. Brady, Una & M. Feinberg, Robert, 2000. "An examination of stock-price effects of EU merger control policy," International Journal of Industrial Organization, Elsevier, vol. 18(6), pages 885-900, August. [Downloadable!] (restricted)
  2. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May. [Downloadable!] (restricted)
  3. Coate, Malcolm B & Higgins, Richard S & McChesney, Fred S, 1990. "Bureaucracy and Politics in FTC Merger Challenges," Journal of Law & Economics, University of Chicago Press, vol. 33(2), pages 463-82, October.
  4. Posner, Richard A, 1970. "A Statistical Study of Antitrust Enforcement," Journal of Law & Economics, University of Chicago Press, vol. 13(2), pages 365-419, October.
  5. Siegfried, John J, 1975. "The Determinants of Antitrust Activity," Journal of Law & Economics, University of Chicago Press, vol. 18(2), pages 559-74, October.
  6. Khemani, R S & Shapiro, Daniel M, 1993. "An Empirical Analysis of Canadian Merger Policy," Journal of Industrial Economics, Blackwell Publishing, vol. 41(2), pages 161-77, June. [Downloadable!] (restricted)
  7. Asch, Peter, 1975. "The Determinants and Effects of Antitrust Activity," Journal of Law & Economics, University of Chicago Press, vol. 18(2), pages 575-81, October.
  8. A. Craig MacKinlay, 1997. "Event Studies in Economics and Finance," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 13-39, March. [Downloadable!] (restricted)
  9. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  10. Aktas, Nihat & de Bodt, Eric & Roll, Richard, 2004. "Market Response to European Regulation of Business Combinations," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 39(04), pages 731-757, December. [Downloadable!]
  11. Bruce R. Lyons, 2004. "Reform of European Merger Policy," Review of International Economics, Blackwell Publishing, vol. 12(2), pages 246-261, 05. [Downloadable!] (restricted)
  12. Bergman, Mats A. & Jakobsson, Maria & Razo, Carlos, 2005. "An econometric analysis of the European Commission's merger decisions," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 717-737, December. [Downloadable!] (restricted)
    Other versions:
  13. Long, William F & Schramm, Richard & Tollison, Robert D, 1973. "The Economic Determinants of Antitrust Activity," Journal of Law & Economics, University of Chicago Press, vol. 16(2), pages 351-64, October.
  14. Duso, Tomaso & Neven, Damien J & Röller, Lars-Hendrik, 2003. "The Political Economy of European Merger Control: Evidence Using Stock Market Data," CEPR Discussion Papers 3880, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  15. Tomaso Duso & Klaus Gugler & Burcin Yurtoglu, 2006. "EU Merger Remedies: A Preliminary Empirical Assessment," Discussion Papers 81, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
  16. Weir, Charlie, 1992. "Monopolies and Mergers Commission, Merger Reports and the Public Interest: A Probit Analysis," Applied Economics, Taylor and Francis Journals, vol. 24(1), pages 27-34, January.
Full references

Cited by:
(explanations, 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.)

  1. Stephen Davies & Matthew Olczak, 2008. "Assessing the Efficacy of Structural Merger Remedies: Choosing Between Theories of Harm?," Working Papers 08-28, Centre for Competition Policy, University of East Anglia. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS is also providing many rankings, for example of authors and institutions.

This page was last updated on 2009-12-4.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.