全球智库信息集成服务系统(G2TT): DP9943 Internal versus External Growth in Industries with Scale Economies: A Computational Model of Optimal Merger Policy

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP9943
	DP9943 Internal versus External Growth in Industries with Scale Economies: A Computational Model of Optimal Merger Policy
	Michael D. Whinston; Volker Nocke; Mark Satterthwaite
发表日期	2014-04-13
出版年	2014
语种	英语
摘要	We study optimal merger policy in a dynamic model in which the presence of scale economies implies that firms can reduce costs through either internal investment in building capital or through mergers. The model, which we solve computationally, allows firms to invest or propose mergers according to the relative profitability of these strategies. An antitrust authority is able to block mergers at some cost. We examine the optimal policy when the antitrust authority can commit to a policy rule and when it cannot commit, and consider both consumer value and aggregate value as possible objectives of the antitrust authority. We find that optimal policy can differ substantially from what would be best considering only welfare in the period the merger is proposed. We also find that the ability to commit can lead to a significant welfare improvement. In general, antitrust policy can greatly affect firms' optimal investment behavior, and firms' investment behavior can in turn greatly affect the antitrust authority's optimal policy.
主题	Industrial Organization
关键词	Antitrust Commitment Entry investment Merger
URL	https://cepr.org/publications/dp9943
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/538777
推荐引用方式 GB/T 7714	Michael D. Whinston,Volker Nocke,Mark Satterthwaite. DP9943 Internal versus External Growth in Industries with Scale Economies: A Computational Model of Optimal Merger Policy. 2014.