An Empirical Analysis of Mexican Merger Policy

30 Pages Posted: 20 Apr 2016  

Marcos Avalos

affiliation not provided to SSRN

Rafael E. De Hoyos Navarro

World Bank

Date Written: February 1, 2008

Abstract

A newly created dataset including 239 decisions made by the Mexican Federal Competition Commission on horizontal mergers between 1997 and 2001 is used to estimate the different factors affecting the Commission's resolution. The paper approximates the decision making process using two different discrete choice models. The results indicate that, contrary to the Commission's objective, the presence of efficiency gains increases the probability of a case being issued. The findings also show that factors different from the ones explicitly mentioned by the Commission have a significant effect on the Commission's final decision. In particular, the presence of a foreign company among the would-be merger firms significantly increases the likelihood of observing an allowed merger.

Keywords: Microfinance, Economic Theory & Research, Labor Policies, Bankruptcy and Resolution of Financial Distress, Corporate Law

Suggested Citation

Avalos, Marcos and De Hoyos Navarro, Rafael E., An Empirical Analysis of Mexican Merger Policy (February 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1096850

Marcos Avalos

affiliation not provided to SSRN

Rafael E. De Hoyos (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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