Merger Policy to Promote Global Players? A Simple Model
AbstractWe use a simple framework where firms in two countries serve their respective domestic markets and a world market to analyze under which conditions cost-reducing mergers will be beneficial for the merging firms, the home country, and the world as a whole. For a national merger, the policies enacted by a national merger authority tend to be overly restrictive from a global efficiency perspective. In contrast, all international mergers that benefit the merging firms will be cleared by either a national or a regional regulator, and this laissez-faire approach is also globally efficient. Finally, we derive the properties of the endogenous merger equilibrium.
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Bibliographic InfoPaper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 666.
Date of creation: Jul 2005
Date of revision:
merger policy; international trade;
Other versions of this item:
- Andreas Haufler & Søren Bo Nielsen, 2008. "Merger policy to promote 'global players'? A simple model," Oxford Economic Papers, Oxford University Press, vol. 60(3), pages 517-545, July.
- Andreas Haufler & Søren Bo Nielsen, 2005. "Merger Policy to Promote ‘Global Players’? A Simple Model," CESifo Working Paper Series 1523, CESifo Group Munich.
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-25 (All new papers)
- NEP-COM-2005-07-25 (Industrial Competition)
- NEP-IND-2005-07-25 (Industrial Organization)
- NEP-PBE-2005-07-25 (Public Economics)
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