Mergers, Markets and Public Policy

Mergers, Markets and Public Policy

Author: Giuliano Mussati

Publisher: Springer Science & Business Media

ISBN: 9789401103879

Category: Business & Economics

Page: 221

View: 105

GIULIANO MUSSATI Why do mergers occur, which are their effects on social welfare and which is the best economic policy toward them? These three questions have been puzzling industrial economists since the end of the last century when the first great merger wave has come about in the US. They have returned at the centre of the stage of the theoretical and empirical economic research during the last decade when merger and acquisition activity became one of the most evident firms' activities in all industrialised countries, being fostered by some general and country specific facts. These facts have been identified in the appearance of new financial instruments facilitating fund raising by firms, in the benevolent behaviour of the authorities in charge of competition policy during the Reagan administration in the US, while inter nal market completion has become a strong incentive for European firms to reach a true continental dimension in the UE through external growth. However a robust and univocal answer to these questions has not yet been found in spite of its importance not only from the theoretical point of view, but also from the normative one. In fact the correct identification of firms' motivations in pursuing merger and acquisition operations and of their consequences on social welfare would help the choice by administra tive authorities of different possible options in competition and industrial policies.

Mergers, Markets and Public Policy

Mergers, Markets and Public Policy

Author: Giuliano Mussati

Publisher: Springer Science & Business Media

ISBN: 0792336437

Category: Business & Economics

Page: 238

View: 762

GIULIANO MUSSATI Why do mergers occur, which are their effects on social welfare and which is the best economic policy toward them? These three questions have been puzzling industrial economists since the end of the last century when the first great merger wave has come about in the US. They have returned at the centre of the stage of the theoretical and empirical economic research during the last decade when merger and acquisition activity became one of the most evident firms' activities in all industrialised countries, being fostered by some general and country specific facts. These facts have been identified in the appearance of new financial instruments facilitating fund raising by firms, in the benevolent behaviour of the authorities in charge of competition policy during the Reagan administration in the US, while inter nal market completion has become a strong incentive for European firms to reach a true continental dimension in the UE through external growth. However a robust and univocal answer to these questions has not yet been found in spite of its importance not only from the theoretical point of view, but also from the normative one. In fact the correct identification of firms' motivations in pursuing merger and acquisition operations and of their consequences on social welfare would help the choice by administra tive authorities of different possible options in competition and industrial policies.

Government Failure versus Market Failure

Government Failure versus Market Failure

Author: Clifford Winston

Publisher: Brookings Institution Press

ISBN: 9780815793915

Category: Business & Economics

Page: 147

View: 412

When should government intervene in market activity and when is it best to let market forces take their natural course? How does the existing empirical evidence about government performance guide our answers to these questions? In this clear, concise book, Clifford Winston offers his innovative analysis—shaped by thirty years of evidence—to assess the efficacy of government interventions. Markets fail when it is possible to make one person better off without making someone else worse off, thus indicating inefficiency. Governments fail when an intervention is unwarranted because markets are performing well or when the intervention fails to correct a market problem efficiently. Winston concludes from existing research that the cost of government failure may actually be considerably greater than the cost of market failure: "My search of the evidence is not limited to policy failures. I will report success stories, but few of them emerged from my search." The prevalence of market failure is due to a lack of conviction in favor of markets, the inflexibility of intervening government agencies, and political forces that enable certain interest groups to benefit at the expense of society as a whole. Winston suggests that government policy can be improved by making greater use of market-oriented solutions that have already produced benefits in certain situations.

Interstate Banking and Branching

Interstate Banking and Branching

Author: United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Financial Institutions Supervision, Regulation, and Deposit Insurance

Publisher:

ISBN: PSU:000021868306

Category: Branch banks

Page: 476

View: 734

Merger Policy in Digital Markets

Merger Policy in Digital Markets

Author: Elena Argentesi

Publisher:

ISBN: OCLC:1129390490

Category: Competition

Page: 43

View: 510

This paper presents a broad retrospective evaluation of mergers and merger decisions in the digital sector. We first discuss the most crucial features of digital markets such as network effects, multi-sidedness, big data, and rapid innovation that create important challenges for competition policy. We show that these features have been key determinants of the theories of harm in major merger cases in the past few years. We then analyse the characteristics of almost 300 acquisitions carried out by three major digital companies -- Amazon, Facebook, and Google -- between 2008 and 2018. We cluster target companies on their area of economic activity and show that they span a wide range of economic sectors. In most cases, their products and services appear to be complementary to those supplied by the acquirers. Moreover, target companies seem to be particularly young, being four-years-old or younger in nearly 60% of cases at the time of the acquisition. Finally, we examine two important merger cases, Facebook/Instagram and Google/Waze, providing a systematic assessment of the theories of harm considered by the UK competition authorities as well as evidence on the evolution of the market after the transactions were approved. We discuss whether the CAs performed complete and careful analyses to foresee the competitive consequences of the investigated mergers and whether a more effective merger control regime can be achieved within the current legal framework.