Merger Control and Enterprise Competitiveness: Empirical Analysis and Policy Recommendations

Reprint No. 2006:10

Author(s): Johan Stennek and Frank VerbovenYear: 2006 Title: European Merger Control. Do We Need an Efficiency Defence? Chapter: 4Editor(s): Fabienne Ilzkovitz and Roderick MeiklejohnPublisher: Edward ElgarCity: Cheltenham (UK) and Northampton (MA) Pages: 202–302

This chapter studies the importance of efficiency gains from horizontal mergers. A general theme throughout the chapter is that efficiency gains, and their pass-on to consumers, may vary substantially from merger to merger. For this reason it seems appropriate to reconsider current practice in European merger control, which does not allow the merging parties to appeal to an efficiency defence. We provide a detailed examination of two main parts of an efficiency analysis. The first part of the chapter considers the presence of efficiencies from mergers, with a focus on economies of scale. The second part considers the pass-on of efficiencies to consumers in the form of lower prices. In a final section, we develop an alternative approach based on the concept of the diversion ratio.

Stennek, Johan and Frank Verboven (2006), "Merger Control and Enterprise Competitiveness: Empirical Analysis and Policy Recommendations". Chapter 4, pp. 202–302 in Fabienne Ilzkovitz and Roderick Meiklejohn, eds., European Merger Control. Do We Need an Efficiency Defence?. Cheltenham (UK) and Northampton (MA): Edward Elgar.

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.


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