Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18987
Authors: 
Haufler, Andreas
Nielsen, Søren Bo
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper 1523
Abstract: 
We use a simple framework where firms in two countries serve their respective domestic markets and a world market to analyze under which conditions cost-reducing mergers will be beneficial for the merging firms, the home country, and the world as a whole. For a national merger, the policies enacted by a national merger authority tend to be overly restrictive from a global efficiency perspective. In contrast, all international mergers that benefit the merging firms will be cleared by either a national or a regional regulator, and this laissez-faire approach is also globally efficient. Finally, we derive the properties of the endogenous merger equilibrium.
Subjects: 
merger policy
international trade
JEL: 
H77
F13
L41
Document Type: 
Working Paper

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