Resumo WP nº 1:

​This paper illustrates that taking alternative mergers into consideration when analyzing the effects of a proposed merger may provide some information to the antitrust authorities. In particular, the use of revealed preference may allow the authorities to establish an expected upper limit on the efficiency gains obtained in a given merger that also increases the participants’ market power. Such limit can then be compared to the lower threshold necessary for merger approval. The policy implications of this result are discussed. (Keywords: Mergers, acquisitions, revealed preference, synergies).

Texto:

After the introduction, including the review of the existing literature, a well known model is presented (section 2) in order to illustrate how some information can be obtained after the authorities are notified of a merger for market power when alternative mergers are equally plausible (section 3). Finally, section 4 concludes.