Download This PaperShould Profit Margins Play a More Decisive Role in Merger Control? - A Rejoinder to Jorge Padilla
Journal of European Competition Law & Practice, Vol. 9, No. 5, pp. 336-342, 2018
14 Pages Posted: 29 Apr 2018 Last revised: 1 Jun 2018
Date Written: April 11, 2018
Abstract
According to empirical research, recent times have seen a significant increase in firms' profit margins.
Higher profit margins are a reflection of increased pricing power.
Prospective mergers are more likely to cause competition concerns the higher firms' pricing power is to begin with.
Keywords: Merger Control, Margins, Competitive Effects
JEL Classification: L4
Suggested Citation: Suggested Citation
Valletti, Tommaso M. and Zenger, Hans, Should Profit Margins Play a More Decisive Role in Merger Control? - A Rejoinder to Jorge Padilla (April 11, 2018). Journal of European Competition Law & Practice, Vol. 9, No. 5, pp. 336-342, 2018, Available at SSRN: https://ssrn.com/abstract=3160630
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