Assessing the Consequences for Competition
INTRODUCTION There is a small but growing literature on merger remedies, which is summarized in this chapter. The literature is quite new, with little published before 2001. This review also incorporates some elements of the wider literature on mergers, but only to the extent necessary to place the remedies literature in its appropriate context. Section 2.1 reviews some principles of what makes for a good remedy, and Section 2.2 reviews some remedy classiﬁcations. Our own taxonomy is set out in Chapter 3. The economic theory and some econometrics of merger remedies are reviewed in Section 2.3, and some special issues relating to high-technology mergers are set out in Section 2.4. Empirical work on the eﬃcacy of remedies has been conducted mainly in house by the major competition authorities, and these studies are reviewed in Section 2.5. Particular attention is paid to the DG Competition study. Our review of newer approaches to remedy appraisal using simulation methods is reserved until Chapter 3. The perspective of transaction cost economics is introduced in Section 2.6, and in Section 2.7 we brieﬂy consider the long-term limitations on merger remedies due to the wider economic forces that tend to determine long-run industrial structure. We close the chapter in Section 2.8 by outlining the ongoing debate about what are the regulatory objectives implicit in any policy of merger control. 2.1 PRINCIPLES OF A GOOD REMEDY The economics literature on principles is not large (for example, Lévêque and Shelanski, 2003; papers in...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.