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

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Author Info
Pedro Cosme da Costa Vieira () (Faculdade de Economia, Universidade do Porto)

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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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Publisher 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
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Handle: RePEc:por:fepwps:289

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Related research
Keywords: Antitrust policy; Economies of scale;

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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This page was last updated on 2009-11-25.

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