Ex ante or ex post competition policy? A progress report
When intervening in markets, say to block a merger, competition authorities are constrained by the limited information they have about the social desirability of the available alternatives. Compared to ex ante control, ex post control is based on the more accurate information that becomes available in the intervening period, but entails temporary losses to social welfare and reversal costs incurred to unscramble the eggs. Through a toy model, we identify situations in which the competition authority finds it optimal to commit to forego the option of ex post review in order to avoid chilling ex ante socially beneficial mergers. On the other hand, the case for ex post review is strengthened if post-merger market conducts can signal the merged firm's private information about the consequences of the merger.
If you experience problems downloading a file, check if you have the proper application to view it first. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- In-Koo Cho & David M. Kreps, 1997.
"Signaling Games and Stable Equilibria,"
Levine's Working Paper Archive
896, David K. Levine.
- Besanko, David & Spulber, Daniel F, 1993. "Contested Mergers and Equilibrium Antitrust Policy," Journal of Law, Economics and Organization, Oxford University Press, vol. 9(1), pages 1-29, April.
- Frédéric Loss & Estelle Malavolti-Grimal & Thibaud Vergé & Fabian Bergès-Sennou, 2005.
"European Competition Policy Modernization : From Notifications to Legal Exception,"
2005-38, Centre de Recherche en Economie et Statistique.
- Loss, Frederic & Malavolti-Grimal, Estelle & Verge, Thibaud & Berges-Sennou, Fabian, 2008. "European competition policy modernization: From notifications to legal exception," European Economic Review, Elsevier, vol. 52(1), pages 77-98, January.
- Frédéric Loss & Estelle Malavolti & Thibaud Vergé & Fabian Bergès-Sennou, 2008. "European competition policy modernization : from notifications to legal exception," Post-Print hal-01021575, HAL.
- Frederic Loss & Estelle Malavolti-Grimal & Thibaud VergÃ© & Fabian Berges, 2008. "European competition policy modernization: from notification to legal exception," Working Papers 22644, Institut National de la Recherche Agronomique, France.
- Bruno Strulovici, 2010.
"Learning While Voting: Determinants of Collective Experimentation,"
Econometric Society, vol. 78(3), pages 933-971, 05.
- Bruno Strulovici, 2008. "Learning while voting: determinants of collective experimentation," Economics Papers 2008-W08, Economics Group, Nuffield College, University of Oxford.
- Bruno Strulovici, 2008. "Learning While Voting: Determinants of Collective Experimentation," Economics Series Working Papers 2008-WO8, University of Oxford, Department of Economics.
- Johnson, Ronald N & Parkman, Allen M, 1991. "Premerger Notification and the Incentive to Merge and Litigate," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(1), pages 145-62, Spring.
- Elzinga, Kenneth G, 1969. "The Antimerger Law: Pyrrhic Victories?," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 43-78, April.
When requesting a correction, please mention this item's handle: RePEc:eee:indorg:v:29:y:2011:i:3:p:356-359. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.