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Ex post or ex ante? On the optimal timing of merger control

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  • Andreea Cosnita-Langlais

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Philippe Tropeano

Abstract

We study the optimal timing of merger control by comparing the pre-and post closing enforcement. Mergers have both pro- and anticompetitive effects, and the parties' (the agency and the merging firms) veri able information on them is endogenous: it depends on the timing of the merger control, as well as on some investment in evidence production. The ex post enforcement turns out optimal whenever the costs of providing veri able information on both efficiency gains and market power are sufficiently low, regardless of whether the fi rms know ex ante or not their true merger type.

Suggested Citation

  • Andreea Cosnita-Langlais & Jean-Philippe Tropeano, 2013. "Ex post or ex ante? On the optimal timing of merger control," Working Papers hal-04141196, HAL.
    • Handle: RePEc:hal:wpaper:hal-04141196
    Note: View the original document on HAL open archive server: https://hal.science/hal-04141196
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    References listed on IDEAS

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    1. Lagerlof, Johan N.M. & Heidhues, Paul, 2005. "On the desirability of an efficiency defense in merger control," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 803-827, December.
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    3. 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.
    4. Farrell Joseph & Shapiro Carl, 2010. "Antitrust Evaluation of Horizontal Mergers: An Economic Alternative to Market Definition," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-41, March.
    5. Choe, Chongwoo & Shekhar, Chander, 2010. "Compulsory or voluntary pre-merger notification? Theory and some evidence," International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 10-20, January.
    6. Barros, Pedro Pita, 2003. "Looking behind the curtain--effects from modernization of European Union competition policy," European Economic Review, Elsevier, vol. 47(4), pages 613-624, August.
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    Cited by:

    1. Andreea Cosnita-Langlais, 2016. "Enforcement of Merger Control. Theoretical Insights for Its Procedural Design," Revue économique, Presses de Sciences-Po, vol. 67(HS1), pages 39-51.
    2. John Kwoka & Tommaso Valletti, 2021. "Unscrambling the eggs: breaking up consummated mergers and dominant firms [Too much data: prices and inefficiencies in data markets]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(5), pages 1286-1306.

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    More about this item

    Keywords

    merger control; competition policy; evidence production;
    All these keywords.

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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