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A comment on efficiency gains and myopic antitrust authority in a dynamic merger game

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  • Pedro Cosme da Costa Vieira

    ()
    (Faculdade de Economia, Universidade do Porto)

Abstract

This paper relaxes the Motta & Vasconcelos’ (2005) short-term assumption that firms’ capital is fixed. We demonstrate that, contrary to the conclusion of that article, in the best interest of consumers, even when firms have large economies of scale, long-term forward-looking Antitrust Authorities must block firms’ merger plans whenever profits of firms are positive.

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File URL: http://www.fep.up.pt/investigacao/workingpapers/08.09.05_WP289.pdf
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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 289.

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Length: 5 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:por:fepwps:289

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Keywords: Antitrust policy; Economies of scale;

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