Demand Side Merger Efficiencies PDF Download
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Author: David Reitman
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Mergers can generate demand side efficiencies that benefit customers in a number of ways, including procurement savings, transaction efficiencies, and quality improvements. We show that per-unit demand side efficiencies and marginal cost efficiencies of the same magnitude have an equivalent impact on the post-merger market in terms of output and welfare. Consequently, there is no reason to distinguish between marginal cost savings and demand side per-unit efficiencies when evaluating the impact of a merger. We demonstrate how various techniques for evaluating the impact of mergers - compensating marginal cost reductions, upward pricing pressure, and merger simulation - can be readily adapted to incorporate demand side as well as supply side efficiencies.
Author: David Reitman
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Mergers can generate demand side efficiencies that benefit customers in a number of ways, including procurement savings, transaction efficiencies, and quality improvements. We show that per-unit demand side efficiencies and marginal cost efficiencies of the same magnitude have an equivalent impact on the post-merger market in terms of output and welfare. Consequently, there is no reason to distinguish between marginal cost savings and demand side per-unit efficiencies when evaluating the impact of a merger. We demonstrate how various techniques for evaluating the impact of mergers - compensating marginal cost reductions, upward pricing pressure, and merger simulation - can be readily adapted to incorporate demand side as well as supply side efficiencies.
Author: Jorge Padilla
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Firms may be able to create new and improved products as a result of merging. These "demand-side efficiencies" should be considered by competition authorities in considering whether to allow a merger. Unlike reductions in costs that merged firms may not pass on to consumers, new and better products necessarily make consumers better off. Moreover, the value of demand-side efficiencies can be quite large, as recent studies of improved products ranging from toilet paper to minivans has demonstrated. Of course, competition authorities should seek evidence that mergers will facilitate new and improved products and weigh these benefits against increased prices and other costs the merger may create. A review of European Union merger cases shows that the Commission needs to consider demand-side efficiencies, and provides further caution against making efficiencies an "offence" rather than a "defence."
Author: Franz Jürgen Säcker
Publisher: Peter Lang
ISBN: 9783631579343
Category : Antitrust law
Languages : en
Pages : 132
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Book Description
The proper definition of the relevant product market still is the lynchpin of competition law: defining the market too wide makes it impossible to capture the companies' behavioural margins that are the result of market power and are not neutralized by competition; defining the market too narrow creates market power and forces undertakings under the application of Art. 82 EC, Art. 2 ECMR, § 19 German Competition Act. In European and German competition law the aspect of demand-side substitutability has been the most important criterion. The meaning of potential competition and especially of supply-side substitutability has not been systematically grasped. The book therefore re-thinks the relevant questions of proper market definition.
Author: Daniel Gore
Publisher: Cambridge University Press
ISBN: 1107007720
Category : Business & Economics
Languages : en
Pages : 559
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Book Description
Provides a clear, concise and practical overview of the key economic techniques and evidence employed in European merger control.
Author: José Luis Moraga-González
Publisher:
ISBN:
Category :
Languages : en
Pages : 61
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Book Description
Author: Gregory Werden
Publisher:
ISBN:
Category : Antitrust law
Languages : en
Pages : 66
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Book Description
Author: Jun Zhang
Publisher:
ISBN:
Category :
Languages : en
Pages : 39
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Book Description
I quantify efficiencies that were created following a horizontal merger between Coca-Cola and Glaceau, the manufacturer of Vitaminwater and Smartwater, in the U.S. premium bottled water market. I estimate a structural demand and supply model where manufacturers choose advertising, product variety (number of UPCs) and wholesale prices, and I allow for several types of efficiencies. With counterfactual simulations, I show how marginal cost, product variety fixed cost, and advertising fixed cost efficiencies affected equilibrium market outcomes. I find that, compared to a "no merger" baseline in year 2009, the merger reduced the prices of Glaceau products by 3.5%-5.2% and increased product varieties by 18.8%-35.8%, advertising of Vitaminwater by 53.9%. Besides, the merger increased market shares of Glaceau products by 40.1%-60.7% and raised consumer surplus by about 22%. These results suggest that, despite a recent focus on mergers that appear to have had negative consequences, some mergers yield benefits.
Author: Jonathan Galloway
Publisher: Routledge
ISBN: 1351918079
Category : Law
Languages : en
Pages : 918
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Book Description
Mergers and acquisitions occur for many legitimate reasons and should be encouraged as a matter of general policy, yet the resulting increase in the level of market concentration and market strength can lead to concerns that certain ’deals’ may irreparably damage the market structure and create anti-competitive effects. This volume explores the competition concerns arising out of mergers and acquisitions, the reasons for merger control and the fundamental options that face all jurisdictions intent on implementing an effective merger control regime. The volume acts as a guide through the development of merger control law, policy and scholarly thought and includes commentary on each of the key stages of any effective merger control regime. The articles consider the objectives of merger control and the broader political landscape within which mergers take place; the procedural issues in merger control, including jurisdictional matters and due process; the different substantive legal standards incorporated into merger control; the relevant theories of harm and the appropriate treatment of efficiencies; and the use of remedies in merger control. The chosen articles mainly, but not exclusively, focus on the US and EU, and several adopt a cross-disciplinary approach encompassing law, political science and economics.
Author: Robert Pitofsky
Publisher: Oxford University Press
ISBN: 0199706751
Category : Law
Languages : en
Pages : 324
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Book Description
How the Chicago School Overshot the Mark is about the rise and recent fall of American antitrust. It is a collection of 15 essays, almost all expressing a deep concern that conservative economic analysis is leading judges and enforcement officials toward an approach that will ultimately harm consumer welfare. For the past 40 years or so, U.S. antitrust has been dominated intellectually by an unusually conservative style of economic analysis. Its advocates, often referred to as "The Chicago School," argue that the free market (better than any unelected band of regulators) can do a better job of achieving efficiency and encouraging innovation than intrusive regulation. The cutting edge of Chicago School doctrine originated in academia and was popularized in books by brilliant and innovative law professors like Robert Bork and Richard Posner. Oddly, a response to that kind of conservative doctrine may be put together through collections of scores of articles but until now cannot be found in any one book. This collection of essays is designed in part to remedy that situation. The chapters in this book were written by academics, former law enforcers, private sector defense lawyers, Republicans and Democrats, representatives of the left, right and center. Virtually all agree that antitrust enforcement today is better as a result of conservative analysis, but virtually all also agree that there have been examples of extreme interpretations and misinterpretations of conservative economic theory that have led American antitrust in the wrong direction. The problem is not with conservative economic analysis but with those portions of that analysis that have "overshot the mark" producing an enforcement approach that is exceptionally generous to the private sector. If the scores of practices that traditionally have been regarded as anticompetitive are ignored, or not subjected to vigorous enforcement, prices will be higher, quality of products lower, and innovation diminished. In the end consumers will pay.
Author: Ioannis Kokkoris
Publisher: Edward Elgar Publishing
ISBN: 180037819X
Category : Law
Languages : en
Pages : 685
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Book Description
Over the past 30 years, merger control has become well-established around the world with broad consensus around its ambit and objectives. That consensus has fractured in recent years. Enforcement today is at a critical juncture, facing an array of challenges and calls for reform unprecedented in their scope and intensity. Authored by leading legal practitioners, economists, enforcers and jurists, this timely Research Handbook on Global Merger Control discusses those challenges and predicts how merger control is likely to evolve.
