A rational expectations critique of merger policy analysis
نویسنده
چکیده
A stricter merger control policy increases the expectation of future price competition. In response, firms increase product differentiation to sustain higher prices. Failing to account for such policy-variant prices may lead to overestimation of the increase in consumer surplus due to the stricter merger policy, rendering the policy analysis subject to the Lucas Critique. D 2004 Elsevier B.V. All rights reserved.
منابع مشابه
Linear Quadratic Optimization for Models with Rational Expectations and Learning
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