
Abstract
In a two-country international trade model with oligopolistic competition, we studythe conditions on market structure and trade costs under which a merger policy designed to benefit domestic consumers is too tough or too lenient from the viewpoint of the foreign country. Calibrating the model to match industry-level data in the U.S. and Canada, we show that at present levels of trade costs merger policy is too tough in the vast majority of sectors. We also quantify the resulting externalities and study the impact of different regimes of coordinating merger policies at varying levels of trade costs.
Item Type: | Paper |
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Keywords: | Mergers and Acquisitions, Merger Policy, Trade Policy, Oligopoly, International Trade |
Faculties: | Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > C5 - Wettbewerbspolitik als Steuerung von Wettbewerbsprozessen |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | F12, F13, L13, L44 |
URN: | urn:nbn:de:bvb:19-epub-25308-6 |
Language: | English |
Item ID: | 25308 |
Date Deposited: | 22. Sep 2015, 06:19 |
Last Modified: | 04. Nov 2020, 13:06 |