Concentration Thresholds for Horizontal Mergers

• 成果类型: Article
• 署名作者: Nocke, Volker; Whinston, Michael D.
• 署名单位: University of Mannheim; University of Surrey; Massachusetts Institute of Technology (MIT); Massachusetts Institute of Technology (MIT)
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20201038
• 发表日期: 2022
• 页码: 1915-1948
• 关键词: welfare enhancing mergers; robust test; MARKET; EFFICIENCY; sellers

摘要

Concentration-based thresholds for horizontal mergers, such as those in the US Horizontal Merger Guidelines, play a central role in merger analysis but their basis remains unclear. We show that there is both a theoretical and an empirical basis for focusing solely on the change in concentration, and ignoring its level, in screening mergers for whether their unilateral price effects will harm consumers. We also argue that current threshold levels likely are too lax, unless one expects efficiency gains of 5 percent or greater, or other factors such as entry and product repositioning to significantly constrain the exercise of market power postmerger. (JEL D43, G34, G38, K21, L13, L41)