*I am indebted to two anonymous referees, Pedro Pita Barros, Andreea Cosnita, Øystein Daljord, Sissel Jensen, Eirik G. Kristiansen, Joe Harrington, Tore Nilssen, Johan Stennek, participants at the IO seminar at the Norwegian School of Economics and Business Administration, the workshop on recent issues in merger policy held in Budapest, seminar at the Department of Economics on the University of Gothenborg, the Competition Commission, the Department of Economics on NTNU, Wissenschaftzentrum Berlin and CRESSE conference in Athens for helpful comments.
OPTIMAL MERGER POLICY: ENFORCEMENT VS. DETERRENCE*
Article first published online: 27 AUG 2009
© 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics
The Journal of Industrial Economics
Special Issue: CRESSE SYMPOSIUM ON COMPETITION POLICY: PROCEDURES, INSTITUTIONS AND INTELLECTUAL PROPERTY RIGHTS Edited by Yannis Katsoulacos and David Ulph
Volume 57, Issue 3, pages 438–456, September 2009
How to Cite
SØRGARD, L. (2009), OPTIMAL MERGER POLICY: ENFORCEMENT VS. DETERRENCE. The Journal of Industrial Economics, 57: 438–456. doi: 10.1111/j.1467-6451.2009.00389.x
- Issue published online: 27 AUG 2009
- Article first published online: 27 AUG 2009
- 1983, The Effectiveness of Antitrust Policy Towards Horizontal Mergers (UMI Research Press, Ann Arbor, Michigan, U.S.A.). ,
- 2003, ‘The Case for Antitrust Enforcement,’ Journal of Economic Perspectives, 17 (4), pp. 27–50. ,
- 1983, ‘Antitrust Compliance: Results of a Survey of Legal Opinion,’ Antitrust Law Journal, 51, pp. 459–516. and ,
- 1999, ‘Decision Theory and Antitrust Rules,’ Antitrust Law Journal, 67, pp. 41–76. and ,
- 1993, ‘Contested Mergers and Equilibrium Antitrust Policy,’ Journal of Law, Economics & Organization, 9 (1), pp. 1–29. and ,
- 2003, ‘Does Antitrust Policy Improve Consumer Welfare? Assessing the Evidence,’ Journal of Economic Perspectives, 17 (4), pp. 3–26. and ,
- 2007, Merger and Merger Remedies in the EU. Assessing the Consequences for Competition (Edward Elgar Publishing, Cheltenham, U.K.). and ,
- 2002, ‘The Development of Targets for Consumer Savings Arising from Competition Policy,’ working paper no. 4, Office of Fair Trading, London, England. and ,
- Deloitte, 2007, ‘The Deterrent Effect of Competition Enforcement by the OFT,’ report submitted to OFT, November, 2007, Office of Fair Trading, London, England.
- 2007, ‘EU Merger Remedies: An Empirical Assessment,’ chapter 12 in Ghosal, V. and Stennek, J. eds., The Political Economy of Antitrust (Elsevier Publishers, Amsterdam, The Netherlands). , and ,
- 2007, ‘The Political Economy of Merger Control: Evidence Using Stock Market Data,’ Journal of Law and Economics, 50, pp. 455–489. , and ,
- 1984, ‘The Limits of Antitrust,’ Texas Law Review, 63, pp. 1–40. ,
- 1983, ‘Horizontal Mergers, Collusion and Stockholders Wealth,’ Journal of Financial Economics, 11 (1–4), pp. 241–273. ,
- 1989, ‘The Role of Stock Market Studies in Formulating Antitrust Policy towards Horizontal Mergers: Comment,’ Quarterly Journal of Business and Economics, 28, pp. 22–38. ,
- 1992, ‘Mergers and the Value of Antitrust Deterrence,’ Journal of Finance, 47 (3), pp. 1005–1029. ,
- 1985, ‘Antimerger Policy under the Hart-Scott-Rodino Act: A Re-examination of the Market Power Hypothesis,’ Journal of Law & Economics, 28 (1), pp. 119–149. and ,
- 2006, ‘The Economics of Welfare Standards in Antitrust,’ Competition Policy International, 2 (2), autumn, 2006, pp. 3–28. and ,
- 1985, ‘The Enforcement and Effects of European Competition Policy: Results of a Survey of Legal Opinion,’ Journal of Common Market Studies, 23 (4), pp. 373–384. ,
- 2007, ‘A Consumer Surplus Defence in Merger Control, chapter in Ghosal, V. and Stennek, J. eds., The Political Economy of Antitrust (Elsevier Publishers, Amsterdam, The Netherlands). pp. 287–302. ,
- 2005a, ‘Hold-Up of Anti-Competitive Mergers,’ International Journal of Industrial Organization, 23 (9–10), pp. 753–775. and ,
- 2005b ‘Industry Concentration and Welfare. On the Use of Stock Market Evidence from Horizontal Mergers,’ CEPR discussion paper 5977, URL http://papers.ssrn.com/sol3/papers.cfm?abstract_id=955338 and ,
- 2002, ‘Transaction Cost Economics, Antitrust Rules and Remedies,’ Journal of Law, Economics & Organization, 18 (1), pp. 95–116. ,
- 2009, ‘On Optimal Legal Standards for Competition Policy – A General Welfare-Based Analysis,’Journal of Industrial Economics, 57 (3), pp. 410–437. and ,
- 2007, ‘A Practical Application of Event Studies in Merger Assessment: Success and Failure,’ European Competition Journal, 3 (1), pp. 65–99. ,
- 2004, ‘Activist Antitrust, ’comment in Journal of Economic Perspectives, 18, pp. 223–224. ,
- 2006, ‘Ex Post Review of Merger Control Decisions,’ a report submitted to the European Commission, December, 2006, URL http://ec.europa.eu/competition,mergers/studies_reports/lear.pdf ,
- 2003, ‘Could Politicians Be More Right than Economists? A Theory of Merger Standards,’ EUI working paper RSC2003714, European University, Florence, Italy, URL http://cadmus.eui.eu/dspace/bitstream/1814/1856/03-14.pdf ,
- Nma, 2005, ‘Annual Report on Competition Policy Developments in the Netherlands,’ report submitted to the OECD competition committee meeting held 18–19 October, 2006, (De Nederlandse Mededingingsautoriteit, The Netherlands).
- Office of Fair Trading, 2005, ‘Positive Impact. An Initial Evaluation of the Effect of the Competition Enforcement Work Conducted by the OFT,’ working paper OFT 827, (Office of Fair Trading, London, England).
- Office of Fair Trading, 2007, ‘Positive Impact 06/07,’ July, 2007, working paper OFT928 (Office of Fair Trading, London, England).
- 2006, ‘Evaluating the Performance of Merger Simulation: Evidence from the U.S. Airline Industry,’ Journal of Law & Economics, 49, pp. 627–649. ,
- 2006, ‘Cost and Benefits of Merger Control: An Applied Game Theoretic Perspective,’ Kyklos, 59 (1), 85–98. , and ,
- PwC Economics, 2005, ‘Ex Post Evaluation of Mergers,’ report submitted to the OFT in March 2005, (Office of Fair Trading, London, England).
- 1983, ‘Losses from Horizontal Mergers: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium,’ Quarterly Journal of Economics, 98, pp. 185–199. , and ,
- 2006, ‘Imperfect Competition Law Enforcement,’ International Journal of Industrial Organization, 24, pp. 1267–1297. and ,
- 2008, ‘Settle for Now but Block for Tomorrow: The Deterrence Effect of Merger Policy Tools,’ Journal of Law and Economics, forthcoming. , and ,
- 1966, ‘The Economic Effects of Antitrust Laws,’ Journal of Law and Economics, 9, pp. 225–258. ,
- 2005, ‘Research into the Anticipation of Merger Control,’ report submitted to NMa, October 27, 2005, see http://www.nmanet.nl/engels/home/news_and_publications/publications/research_info_the_anticipation_of_merger_control.asp ,