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Early settlement in Euopean merger control

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journal contribution
posted on 14.06.2016, 13:25 authored by Luke GarrodLuke Garrod, Bruce Lyons
We analyse the determinants of early settlement between merging parties and the European Commission over remedies that remove concerns of anti- comeptitive effects. This extends the previously narrow range of econometric literature on early settlement. Consistent with the theory of early settlement, our results confirm the importance of delay costs and of uncertainty, measured by the complexity of the economic analysis required for each merger. We also find a non-monotonic effect of agency resourcing, which raises questions about the Commission's efficiency in times of high case load. Econometrically, we select a sample of merger decisions in which the European Commission intervened due to concerns of anticompetitive effects, and our selection model provides estimates of the factors determining intervention by the Commission. Conclusions are drawn for public policy.

History

School

  • Business and Economics

Department

  • Economics

Published in

Journal of Industrial Economics

Volume

64

Issue

1

Pages

27 - 63

Citation

GARROD, L. and LYONS, B., 2016. Early settlement in Euopean merger control. Journal of Industrial Economics, 64 (1), pp.27-63

Publisher

Journal of Industrial Economics Editorial Board and John Wiley & Sons Ltd (© the authors)

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution 4.0 Unported (CC BY 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by/4.0/

Publication date

2016-04-26

Notes

This is an Open Access Article. It is published by Wiley under the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/

ISSN

0022-1821

Language

en