Cost and Benefits of Merger Control: An Applied Game Theoretic Perspective

14 Pages Posted: 8 May 2006

See all articles by Bas Postema

Bas Postema

Netherlands Competition Authority (NMa)

Marie Goppelsroeder

University of Amsterdam

Peter A. G. van Bergeijk

Ministry of Economic Affairs

Abstract

This paper discusses how simulation models based on game-theoretic foundations can be used to arrive at an estimate of the net benefits of the merger control legislation. We illustrate our method using the Dutch new merger control legislation that was introduced in 1998. We analyse the effects of proposed mergers in four markets where 26 firms are operating and use a sample period of 5 years. Based on the results of these cases and using a cost benefit analysis, we estimate the net benefits of Dutch merger control at about a little more than 100 million a year during the first five years of merger control in The Netherlands.

Suggested Citation

Postema, Bas and Goppelsroeder, Marie and van Bergeijk, Peter A. G., Cost and Benefits of Merger Control: An Applied Game Theoretic Perspective. Kyklos, Vol. 59, No. 1, pp. 85-98, February 2006, Available at SSRN: https://ssrn.com/abstract=881888 or http://dx.doi.org/10.1111/j.1467-6435.2006.00321.x

Bas Postema (Contact Author)

Netherlands Competition Authority (NMa) ( email )

Postbus 16326
2500 BH Den Haag
Netherlands

Marie Goppelsroeder

University of Amsterdam ( email )

Department of Economics (ACLE)
Roetersstraat 11
Amsterdaam, 1018WB
Netherlands
+31-20-525-5052 (Phone)
+31-20-525-5318 (Fax)

Peter A. G. Van Bergeijk

Ministry of Economic Affairs ( email )

Bezuidenhoutseweg 20
Den Haag, 2594 AV
Netherlands
+31 70 3796312 (Phone)

HOME PAGE: http://economie.blogspot.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
23
Abstract Views
2,129
PlumX Metrics