Do cartel breakdowns induce mergers? : Evidence from EC cartel cases


Hüschelrath, Kai ; Smuda, Florian


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URL: https://ub-madoc.bib.uni-mannheim.de/33912
URN: urn:nbn:de:bsz:180-madoc-339125
Document Type: Working paper
Year of publication: 2013
The title of a journal, publication series: ZEW Discussion Papers
Volume: 13-036
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L41 , K21,
Keywords (English): Antitrust policy , cartels , mergers , cartel breakdown , European Union
Abstract: We investigate the impact of cartel breakdowns on merger activity. Merging information on cartel cases decided by the European Commission (EC) between 2000 and 2011 with a detailed data set of worldwide merger activity, we find that, first, the average number of all merger transactions increase by up to 51 percent when comparing the three years before the cartel breakdowns with the three years afterwards. Second, for the subset of horizontal mergers, merger activity is found to increase even more – by up to 83 percent – after the cartel breakdowns. Our results not only suggest that competition authorities should consider mergers as potential ‘second-best’ alternative to cartels but also imply that resource (re)allocations in competition authorities, law practices and economic consultancies may become necessary to handle the increase in merger cases.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Hüschelrath, Kai ; Smuda, Florian (2013) Do cartel breakdowns induce mergers? : Evidence from EC cartel cases. Open Access ZEW Discussion Papers Mannheim 13-036 [Working paper]
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