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 Simulation in Competition Policy: A Survey

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Oliver Budzinski () (Department of Environmental and Business Economics, University of Southern Denmark)
Isabel Ruhmer () (CDSE,University of Mannheim, Germany)

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

Abstract

Advances in competition economics as well as in computational and empirical methods have offered the scope for the employment of merger simulation models in merger control procedures during the past almost 15 years. Merger simulation is, nevertheless, still a very young and innovative instrument of antitrust and, therefore, its ‘technical’ potential is far from being comprehensively exploited and teething problems in its practical use in the antitrust environment prevail. We provide a classification of state-of-the-art merger simulation models and review their previous employment in merger cases as well as the problems and limitations currently associated with their use in merger control. In summary, merger simulation models represent an important and valuable extension of the toolbox of merger policy. However, they do not qualify as a magic bullet and must be combined with other, more traditional instruments of competition policy in order to comprehensively unfold its beneficial effects. The authors thank Ulrich Schwalbe, Wolfgang Kerber, Arndt Christiansen and Niels Vestergaard for valuable comments on earlier versions of the paper, the participants of the 30th Hohenheimer Oberseminar (Nuernberg, April 2008) for helpful discussion, and Barbara Güldenring for valuable editorial assistance.

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.sdu.dk/~/media/Files/Om_SDU/Institutter/Miljo/ime/wp/budzinski82.ashx
File Format: application/pdf
File Function: First version, 2009-01
Download Restriction: no

Publisher Info
Paper provided by University of Southern Denmark, Department of Environmental and Business Economics in its series Working Papers with number 82/09.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 76 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:sdk:wpaper:82

Contact details of provider:
Postal: Niels Bohrs Vej 9, 6700 Esbjerg
Phone: (+45) 6550 1000
Fax: (+45) 6550 1091
Email:
Web page: http://www.sam.sdu.dk/ime
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Ulla H. Oehlenschläger).

Related research
Keywords: Merger simulation; merger control; antitrust; oligopoly theory; auction models; mergers & acquisitions;

Other versions of this item:

Find related papers by JEL classification:
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

This paper has been announced in the following NEP Reports:

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. Ivaldi, Marc & Verboven, Frank, 2001. "Quantifying the Effects from Horizontal Mergers in European Competition Policy," CEPR Discussion Papers 2697, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Arndt Christiansen and Wolfgang Kerber & Wolfgang Kerber, 2006. "Competition Policy with Optimally Differentiated Rules Instead of "Per se Rules vs. Rule of Reason"," Marburg Working Papers on Economics 200606, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
  3. Richard A. Posner, 1999. "The Law and Economics of the Economic Expert Witness," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 91-99, Spring. [Downloadable!] (restricted)
  4. Richard J. Gilbert & Michael L. Katz, 2001. "An Economist's Guide to U.S. v. Microsoft," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 25-44, Spring. [Downloadable!] (restricted)
    Other versions:
  5. Peters, Craig, 2006. "Evaluating the Performance of Merger Simulation: Evidence from the U.S. Airline Industry," Journal of Law & Economics, University of Chicago Press, vol. 49(2), pages 627-49, October.
  6. Werden, Gregory J & Froeb, Luke M, 1994. "The Effects of Mergers in Differentiated Products Industries: Logit Demand and Merger Policy," Journal of Law, Economics and Organization, Oxford University Press, vol. 10(2), pages 407-26, October.
  7. Slade, Margaret E., 2006. "Merger Simulations of Unilateral Effects : What Can We Learn from the UK Brewing Industry?," The Warwick Economics Research Paper Series (TWERPS) 767, University of Warwick, Department of Economics. [Downloadable!]
  8. Gregory Werden, 2001. "Microsoft's Pricing of Windows and the Economics of Derived Demand Monopoly," Review of Industrial Organization, Springer, vol. 18(3), pages 257-262, May. [Downloadable!] (restricted)
  9. Michael J. Mandel, 1999. "Going for the Gold: Economists as Expert Witnesses," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 113-120, Spring. [Downloadable!] (restricted)
  10. Daniel Kahneman, 2003. "A Psychological Perspective on Economics," American Economic Review, American Economic Association, vol. 93(2), pages 162-168, May. [Downloadable!]
  11. Germán Coloma, 2006. "Econometric estimation of PCAIDS models," Empirical Economics, Springer, vol. 31(3), pages 587-599, September. [Downloadable!] (restricted)
    Other versions:
  12. Hausman, Jerry A. & Leonard, Gregory K., 2005. "Using merger simulation models: Testing the underlying assumptions," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 693-698, December. [Downloadable!] (restricted)
  13. Ivaldi, Marc & Verboven, Frank, 2005. "Quantifying the effects from horizontal mergers: Comments on the underlying assumptions," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 699-702, December. [Downloadable!] (restricted)
  14. Gregory J. Werden, 2000. "Expert Report in United States v. Interstate Bakeries Corp. and Continental Baking Co," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 7(2), pages 139-148, July. [Downloadable!] (restricted)
  15. Luke M. Froeb, Gregory J. Werden, 2000. "An Introduction to the Symposium on the Use of Simulation in Applied Industrial Organization," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 7(2), pages 133-137, July. [Downloadable!] (restricted)
  16. Philip Crooke & Luke Froeb & Steven Tschantz & Gregory Werden, 1999. "Effects of Assumed Demand Form on Simulated Postmerger Equilibria," Review of Industrial Organization, Springer, vol. 15(3), pages 205-217, November. [Downloadable!] (restricted)
  17. Roy Epstein & Daniel Rubinfeld, 2001. "Merger Simulation: A Simplified Approach with New Applications," Department of Economics, Working Paper Series 1002, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
  18. Orley Ashenfelter & Daniel Hosken, 2008. "The Effect of Mergers on Consumer Prices: Evidence from Five Selected Case Studies," Working Papers 1037, Princeton University, Department of Economics, Center for Economic Policy Studies.. [Downloadable!]
  19. Baker, Jonathan B & Rubinfeld, Daniel L, 1999. "Empirical Methods in Antitrust Litigation: Review and Critique," American Law and Economics Review, Oxford University Press, vol. 1(1-2), pages 386-435, Fall.
  20. Steven Tschantz, Philip Crooke, Luke Froeb, 2000. "Mergers in Sealed versus Oral Auctions," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 7(2), pages 201-212, July. [Downloadable!] (restricted)
  21. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
  22. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September. [Downloadable!] (restricted)
    Other versions:
  23. Dalkir, Serdar & Logan, John W. & Masson, Robert T., 2000. "Mergers in symmetric and asymmetric noncooperative auction markets: the effects on prices and efficiency," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 383-413, April. [Downloadable!] (restricted)
  24. Hansen, Lars Peter & Heckman, James J, 1996. "The Empirical Foundations of Calibration," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 87-104, Winter. [Downloadable!] (restricted)
  25. Daniel Rubinfeld & Roy Epstein, 2001. "Merger Simulation: A Simplified Approach with New Applications," Competition Policy Center, Working Paper Series CPC01-026, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  26. Damien J. Neven, 2006. "Competition economics and antitrust in Europe," Economic Policy, CEPR, CES, MSH, vol. 21(48), pages 741-791, October. [Downloadable!] (restricted)
  27. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July. [Downloadable!] (restricted)
  28. Orley Ashenfelter & Daniel Hosken, 2008. "The Effect of Mergers on Consumer Prices: Evidence from Five Selected Case Studies," NBER Working Papers 13859, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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. Oliver Budzinski, 2009. "Modern Industrial Economics and Competition Policy: Open Problems and Possible Limits," Working Papers 93/09, University of Southern Denmark, Department of Environmental and Business Economics. [Downloadable!]
Statistics
Access and download statistics

Did you know? You can create your own reading lists on IDEAS.

This page was last updated on 2009-11-2.

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.