Negotiating remedies : revealing the merger efficiency gains
This paper contributes to the economic analysis of merger control by taking into account the efficiency gains for the design of structural merger remedies when the competition authorities do not observe the magnitude of efficiency gains. We show that whenever divestitures are necessary, the Competition Authority will need to extract from the merging partners their private information on the merger’s efficiency gains. For this we propose a revelation mechanism combining divestitures with two additional tools, the regulation of the divestitures sale price and a merger fee. We show that an optimal combination of both instruments is effective: the most efficient merged firms are claimed to pay a merger fee while the less efficient divest asets at an upwards distorted sale price.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: 1241 rue des Résidences, Domaine Universitaire, 38400 Saint Martin d'Hères|
Phone: (0033) 4 76 82 54 39
Web page: http://www.grenoble.inra.fr/
More information through EDIRC
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.
- Jo Seldeslachts & Joseph A. Clougherty & Pedro Pita Barros, 2007.
"Remedy for Now but Prohibit for Tomorrow: The Deterrence Effects of Merger Policy Tools,"
CIG Working Papers
SP II 2007-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Seldeslachts, Jo & Clougherty, Joseph A. & Barros, Pedro Pita, 2007. "Remedy for Now but Prohibit for Tomorrow: The Deterrence Effects of Merger Policy Tools," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 218, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Barros, Pedro Pita & Clougherty, Joseph A. & Seldeslachts, Jo, 2007. "Remedy for Now but Prohibit for Tomorrow: The Deterrence Effects of Merger Policy Tools," CEPR Discussion Papers 6437, C.E.P.R. Discussion Papers.
- Luis Corchón & Ramon Fauli-Oller, 2004.
"To merge or not to merge: That is the question,"
Review of Economic Design,
Springer;Society for Economic Design, vol. 9(1), pages 11-30, December.
- Corchon, Luis & Faulí-Oller, Ramon, 1999. "To Merge or Not To Merge: That is the Question," CEPR Discussion Papers 2190, C.E.P.R. Discussion Papers.
- Ramón Faulí-Oller & Luis Corchón, 2000. "- To Merge Or Not To Merge: That Is The Question," Working Papers. Serie AD 2000-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- 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.
- Joseph Farrell & Carl Shapiro, 1990. "Asset Ownership and Market Structure in Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 275-292, Summer.
- Neven, Damien J. & Roller, Lars-Hendrik, 2005.
"Consumer surplus vs. welfare standard in a political economy model of merger control,"
International Journal of Industrial Organization,
Elsevier, vol. 23(9-10), pages 829-848, December.
- Neven, Damien J & Röller, Lars-Hendrik, 2000. "Consumer Surplus vs. Welfare Standard in a Political Economy Model of Merger Control," CEPR Discussion Papers 2620, C.E.P.R. Discussion Papers.
- Damien J. Neven & Lars-Hendrik Röller, 2000. "Consumer Surplus vs. Welfare Standard in a Political Economy Model of Merger Control," CIG Working Papers FS IV 00-15, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Damien J. NEVEN & Lars-Hendrik RÖLLER, 2000. "Consumer Surplus vs. Welfare Standard in a Political Economy Model of Merger Control," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.24, Université de Lausanne, Faculté des HEC, DEEP.
- Helder Vasconcelos, 2010.
"Efficiency Gains And Structural Remedies In Merger Control,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 58(4), pages 742-766, December.
- Vasconcelos, Helder, 2007. "Efficiency Gains and Structural Remedies in Merger Control," CEPR Discussion Papers 6093, C.E.P.R. Discussion Papers.
- Lars-Hendrik RÃ¶ller & Johan Stennek & Frank Verboven, 2006.
"Efficiency Gains from Mergers,"
in: European Merger Control, chapter 3
Edward Elgar Publishing.
- Lars-Hendrik Röller & Johan Stennek & Frank Verboven, 2000. "Efficiency Gains from Mergers," CIG Working Papers FS IV 00-09, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Röller, Lars-Hendrik & Stennek, Johan & Verboven, Frank, 2000. "Efficiency Gains from Mergers," Working Paper Series 543, Research Institute of Industrial Economics.
- Bensaid, Bernard & Encaoua, David & Winckler, Antoine, 1994. "Competition, cooperation and mergers: Economic and policy issues," European Economic Review, Elsevier, vol. 38(3-4), pages 637-650, April.
- Fridolfsson, Sven-Olof & Stennek, Johan, 2005. "Hold-up of anti-competitive mergers," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 753-775, December.
When requesting a correction, please mention this item's handle: RePEc:gbl:wpaper:200803. 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: (Agnès Vertier)
If references are entirely missing, you can add them using this form.