Abstract
Recently, competition authorities use merger simulation tools to predict the effects of a merger on price, consumer welfare and social welfare. However, since standard merger simulation tools are developed to predict those effects in a closed economy, they do not consider the role of exports in evaluating merger effects. In an open economy or export-oriented economy, a typical manufacturing industry exhibits quite high shares of export volumes. The welfare effects of merger could be quite different between an open economy and a closed economy. In an open economy, we need to consider exports in evaluating merger effects, and this article provides a framework on how to incorporate the role of exports in a standard Cournot merger simulation model.
Original language | English |
---|---|
Pages (from-to) | 53-66 |
Number of pages | 14 |
Journal | Hitotsubashi Journal of Economics |
Volume | 57 |
Issue number | 1 |
Publication status | Published - 2016 Jun |
Bibliographical note
Publisher Copyright:© Hitotsubashi University.
Keywords
- Merger evaluation
- Merger simulation
- Open economy
ASJC Scopus subject areas
- General Business,Management and Accounting
- Economics and Econometrics