A Brief Assessment of the Procompetitive Effects of Organizational Restructuring in the Ag-Biotech Industry

ICLE Antitrust & Consumer Protection Research Program White Paper 2017-2

30 Pages Posted: 24 Jun 2019

See all articles by Geoffrey A. Manne

Geoffrey A. Manne

International Center for Law & Economics (ICLE)

Kristian Stout

International Center for Law & Economics (ICLE)

Date Written: May 09, 2017

Abstract

This paper identifies and responds to several of those misconceptions, focusing in particular on the claims raised in a 2016 working paper produced by the Agricultural and Food Policy Center at Texas A&M University, entitled Effects of Proposed Mergers and Acquisitions Among Biotechnology Firms on Seed Prices (“Texas A&M Report” or “Report”). Fundamentally, the Texas A&M Report incorporates flawed or incomplete antitrust law and economics in its condemnation of the pending mergers by alleging likely harms without considering their likely countervailing and procompetitive benefits. Further, the potential harms alleged are premised on unsound or outdated economic theory, or rooted in inconsistent or inaccurate characterizations of the deals, the industry, and its competitive dynamics. The Report’s substantial flaws make it an unsuitable guide to proper antitrust policy regarding the proposed deals.

Keywords: Agriculture, Antitrust, Biotech, Consolidation, Economic Analysis, Efficiencies, Innovation, Intellectual Property, Merger Guidelines, Mergers, Patent, Vertical Restraints

Suggested Citation

Manne, Geoffrey and Stout, Kristian, A Brief Assessment of the Procompetitive Effects of Organizational Restructuring in the Ag-Biotech Industry (May 09, 2017). ICLE Antitrust & Consumer Protection Research Program White Paper 2017-2 . Available at SSRN: https://ssrn.com/abstract=3405711 or http://dx.doi.org/10.2139/ssrn.3405711

Geoffrey Manne (Contact Author)

International Center for Law & Economics (ICLE) ( email )

2117 NE Oregon St.
Suite 501
Portland, OR 97232
United States
503-770-0076 (Phone)

HOME PAGE: http://www.laweconcenter.org

Kristian Stout

International Center for Law & Economics (ICLE) ( email )

2117 NE Oregon St.
Ste 501
Portland, OR Oregon 97232
United States
5037700076 (Phone)
5037700076 (Fax)

HOME PAGE: http://www.laweconcenter.org

Register to save articles to
your library

Register

Paper statistics

Downloads
4
Abstract Views
63
PlumX Metrics