Handbook of Game Theory and Industrial Organization, Volume II
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Handbook of Game Theory and Industrial Organization, Volume II


Edited by Luis C. Corchón and Marco A. Marini

This second volume of the Handbook includes original contribution by experts in the field. It provides up-to-date surveys of the most relevant applications of game theory to industrial organization. The book covers both classical as well as new IO topics such as mergers in markets with homogeneous and differentiated goods, leniency and coordinated effects in cartels and mergers, static and dynamic contests, consumer search and product safety, strategic delegation, platforms and network effects, auctions, environmental and resource economics, intellectual property, healthcare, corruption, experimental industrial organization and empirical models of R & D.
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Chapter 5: Assessing coordinated effects in merger cases

Natalia Fabra and Massimo Motta


Mergers can give rise to two types of anticompetitive effects: unilateral effects and coordinated effects. The latter arise if after merger firms can increase their market power by coordinating their actions. In this chapter we explain what coordinated effects are and how they can be identified. As building blocks for the analysis of coordinated effects in mergers, we review the economic meaning of collusion, and assess the factors that allow firms to reach and enforce collusive outcomes. We also review some approaches for quantifying coordinated effects, and provide an overview of the use of coordinated effects in European merger control.

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