Internal versus External Growth in Industries with Scale Economies: A Computational Model of Optimal Merger Policy

• 成果类型: Article
• 署名作者: Mermelstein, Ben; Nocke, Volker; Satterthwaite, Mark A.; Whinston, Michael D.
• 署名单位: University of Mannheim; Center for Economic & Policy Research (CEPR); Northwestern University; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/704069
• 发表日期: 2020
• 页码: 301-341
• 关键词: ANTITRUST DEFENSE; PRODUCTIVITY; MARKET

摘要

We study merger policy in a dynamic computational model in which firms can reduce costs through investment or through mergers. Firms invest or propose mergers according to the profitability of these strategies. An antitrust authority can block mergers at some cost. We examine the optimal policy for an antitrust authority that cannot commit to its future policy and approves mergers as they are proposed. We find that the optimal policy can differ substantially from a policy based on static welfare. In general, antitrust policy can greatly affect firms' investment behavior, and firms' investment behavior can greatly affect the optimal antitrust policy.