Horizontal Merger Simulation: A Complementary Tool to the Structural Analysis (Simulação De Atos De Concentração Horizontais: Uma Ferramenta Complementar À Análise Estrutural)

36 Pages Posted: 20 Mar 2008  

Tarcisio da Graca

Université du Québec en Outaouais

Date Written: February 28, 2008

Abstract

The authorities of the Brazilian competition system decide upon horizontal mergers and acquisitions that come to their review, applying the traditional structural analysis, as established by the Brazilian horizontal merger guidelines. This article aims at illustrating the refinement that can be achieved in the evaluation process of such cases, by using differentiated product horizontal merger simulation models. Applying both methodologies to hypothetical cases, I illustrate that the simulation results provide more precise information about their likely effects with richer details. This may be accomplished by using the same data required for the structural analysis. The use of the simulation model may also contribute to guide the discussion about the impact of the efficiencies generated by a merger and about the role of potential or real entries of new firms in the market place.

Notes: Downloadable document is in Portuguese.

Keywords: horizontal mergers, simulation models, antitrust

JEL Classification: L41

Suggested Citation

da Graca, Tarcisio, Horizontal Merger Simulation: A Complementary Tool to the Structural Analysis (Simulação De Atos De Concentração Horizontais: Uma Ferramenta Complementar À Análise Estrutural) (February 28, 2008). Available at SSRN: https://ssrn.com/abstract=1107355 or http://dx.doi.org/10.2139/ssrn.1107355

Tarcisio Da Graca (Contact Author)

Université du Québec en Outaouais ( email )

Case postale 1250
succursale Hull
Gatineau, Québec J8X 3X7
Canada

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