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- W44464345 abstract "The purpose of this article is to investigate the optimal merger policy in the presence of deterrence as well as type I and type II errors. We derive the optimal number of merger investigations. We show that as long as the quality of the competition authority’s final decision to ban or not a merger is sufficiently high, a part of, but not all, the potential anticompetitive mergers are deterred in optimum. There will be a positive welfare effect of the merger investigations due to its deterrence effect, while the merger investigations as such might have a negative impact on welfare (enforcement effect). The results have important implications for how one should interpret the empirical studies of the effects of merger enforcement." @default.
- W44464345 created "2016-06-24" @default.
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- W44464345 date "2008-09-01" @default.
- W44464345 modified "2023-09-26" @default.
- W44464345 title "Optimal merger policy" @default.
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