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Ex ante or Ex post? When the timing of merger assessment is up to the merging firms

Author

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  • Jean-Philippe Tropeano

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We develop a framework in which the timing of the merger control is left to the merging firms' discretion: before the completion of the merger (ex ante) or afterwards (ex post). We show that the choice of merger control timing by the firms always dominates the ex ante control in terms of expected consumer surplus. The choice of merger control timing also dominates the ex post control except if the expected merger outcome is very anti-competitive.

Suggested Citation

  • Jean-Philippe Tropeano, 2020. "Ex ante or Ex post? When the timing of merger assessment is up to the merging firms," Post-Print halshs-02875213, HAL.
    • Handle: RePEc:hal:journl:halshs-02875213
    DOI: 10.1016/j.infoecopol.2020.100862
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    References listed on IDEAS

    as
    1. Carl Shapiro, 2019. "Protecting Competition in the American Economy: Merger Control, Tech Titans, Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 33(3), pages 69-93, Summer.
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    6. Ottaviani, Marco & Wickelgren, Abraham L., 2011. "Ex ante or ex post competition policy? A progress report," International Journal of Industrial Organization, Elsevier, vol. 29(3), pages 356-359, May.
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