In this paper, we consider the organisation of international antitrust as an issue of institution design which involves a trade-off between an inadequate internalisation of external effects across jurisdictions and the risk of capture in a centralised agency. We focus on the first element of the trade-off and on merger control. We first point out that the current framework of public international law allows for wide discretion in the assertion of jurisdiction. We then consider various allocation of jurisdictions in a stylised model of international merger control which attempts to capture the essential features of the objectives being pursued and of the procedures being implemented in the major jurisdictions. We find that in this framework, much of the scope for conflict disappears. The fact that conflicts actually often arise in global industries must then be associated with the pursuit of objectives that antitrust authorities are not supposed to pursue. We also find that the allocation of jurisdiction matters surprisingly little for the final outcome.
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Length: 16 pages Date of creation: Sep 1999 Date of revision: Publication status: Published in European Economic Review, vol. 44(4-6), May 2000, pp. 845-855 Handle: RePEc:lau:crdeep:9916
Find related papers by JEL classification: L4 - Industrial Organization - - Antitrust Issues and Policies K0 - Law and Economics - - General
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.)
Lars-Hendrik Röller & Christian Wey, 2002.
"Merger Control in the New Economy,"
CIG Working Papers
FS IV 02-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
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