IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Information-Sharing Between Competition Authorities: the Case of a Multinational Merger

  • Marta Troya-Martinez

The increasing number of antitrust cases that affect more than one country calls for more active cooperation between competition authorities.� I analyse the impact of exchange of confidential information between two authorities deciding on a multinational merger.� The authorities want to clear the merger if the information sent by the firm suggests that the expected welfare in their country will be enhanced and the firm can secretly manipulate the precision with which it transmits this information.� The authorities differ in their leniency towards the merger and we focus on the cases where the authorities disagree about the decision.� Under no information-sharing, the firm chooses an extreme level of precision: very high (low) for the most (least) lenient authority.� Under information-sharing, the firm is restricted to choose the same precision for both authorities.� The firm's choice depends on the level of cooperation in the decision-making between the countries.� If the authorities exert their veto power, the firm always uses the lowest level of precision.� If the authorities also cooperate in the decision-making, the firm's choice of precision may be non-monotonic in the average welfare implications and intermediate levels of precision are chosen.� Other situations where the model can be applied abound in industrial organisation and political economy.

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.

File URL: http://www.economics.ox.ac.uk/materials/working_papers/paper496.pdf
Download Restriction: no

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 496.

as
in new window

Length:
Date of creation: 01 Jul 2010
Date of revision:
Handle: RePEc:oxf:wpaper:496
Contact details of provider: Postal: Manor Rd. Building, Oxford, OX1 3UQ
Web page: http://www.economics.ox.ac.uk/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:496. 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: (Caroline Wise)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.