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Unilateral Effects in Merger Analysis: Models, Merits, and Merger Policy

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  • Malcolm B. Coate

Abstract

This paper models the Federal Trade Commission's (FTC) unilateral effects merger policy using a sample of 192 investigations undertaken between 1993 and 2010 . Statistical analysis shows that the number of significant rivals represents a reasonable structural proxy for the FTC' merger challenge decision, although other variables, such as impediments to entry, fringe share, clear evidence of head-to-head competition between the merging firms, competitive effects' evidence, and efficiency-related proxies, also affect the decision to challenge a merger. Some of these variables suggest that the innovations in the 2010 Merger Guidelines had already been applied in FTC merger analysis .

Suggested Citation

  • Malcolm B. Coate, 2013. "Unilateral Effects in Merger Analysis: Models, Merits, and Merger Policy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 20(2), pages 145-162, July.
    • Handle: RePEc:taf:ijecbs:v:20:y:2013:i:2:p:145-162
    DOI: 10.1080/13571516.2013.782975
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    References listed on IDEAS

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    1. Malcolm Coate, 1995. "The Shifting Sands of Merger Enforcement at the Federal Trade Commission," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 2(3), pages 393-407.
    2. Malcolm B. Coate, 2002. "A Test of Political Control of the Bureaucracy: The Case of Mergers," Economics and Politics, Wiley Blackwell, vol. 14(1), pages 1-18.
    3. Malcolm B. Coate, 2002. "A Test of Political Control of the Bureaucracy: The Case of Mergers," Economics and Politics, Wiley Blackwell, vol. 14(1), pages 1-18.
    4. Malcolm Coate, 2005. "Empirical Analysis of Merger Enforcement Under the 1992 Merger Guidelines," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(4), pages 279-301, December.
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