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Effective European Antitrust: Does Ec Merger Policy Generate Deterrence?

Listed author(s):
  • Joseph A. Clougherty
  • Tomaso Duso
  • Miyu Lee
  • Jo Seldeslachts

We estimate the deterrence effects of European Commission (EC) merger policy instruments over the 1990-2009 period. Our empirical results suggest that phase-1 remedies uniquely generate robust deterrence as – unlike phase-1 withdrawals, phase-2 remedies, and preventions – phase-1 remedies lead to fewer merger notifications in subsequent years. Furthermore, the deterrence effects of phase-1 remedies work best in high-concentration industries; i.e., industries where the HHI is above the 0.2 cut-off level employed by the EC. Additionally, we find that phase-1 remedies do not deter clearly pro-competitive mergers, but do deter potentially anti-competitive mergers in high-concentration industries.

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File URL: http://hdl.handle.net/10.1111/ecin.12346
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Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 54 (2016)
Issue (Month): 4 (October)
Pages: 1884-1903

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Handle: RePEc:bla:ecinqu:v:54:y:2016:i:4:p:1884-1903
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