Prophylactic Merger Policy

Merger Policy , Entry , and Entrepreneurship

We assess the impact of merger policy on entry and entrepreneurship. Facing uncertainty about its prospects and foreseeing that it may wish to quit should profitability prove poor, a rational entrant considers possible exit routes. Horizontal merger reduces competition subsequently, lowering welfare in the short run, but also provides a valuable exit route. By facilitating exit and thus raising...

What should regulators do about merger policy?

I argue that merger policy needs to be driven by di€erent considerations in Europe, Japan and the United States. In Europe the main challenge is to set up a system so that ecient consolidation can occur once the single currency is established. In Japan the policy ought to be directed towards trying to attract foreign institutions to acquire under-capitalized domestic institutions. Japan does n...

Making European Merger Policy More Predictable

Optimal Release Policy for Prophylactic Biological Control

In this paper, we study the prophylactic biological control strategy for greenhouse crops protection. The method consists in the preventive installation of natural enemies to fight against an invading pest, using discrete augmentative (i.e. inondative) releases of the natural enemies. We consider a simple non negative prey (pest) predator (natural enemy) model in ordinary differential equations...

Bo Nielsen : Merger Policy to Promote Global Players ? A Simple

We use a simple framework where firms in two countries serve their respective domestic markets and a world market to analyze under which conditions cost-reducing mergers will be beneficial for the merging firms, the home country, and the world as a whole. For a national merger, the policies enacted by a national merger authority tend to be overly restrictive from a global efficiency perspective...