(Center for Economic Studies, 2003-12) Van Cayseele, Patrick; Konings, Jozef; De Loecker, Jan
The ex ante merger control process that exists at the EC as well as in
many of the constituting member states is a particular type of government
intervention, namely one in the market for corporate control. As such, it
is supposed to correct for a market failure. Here in particular, merging
firms could gain market power and raise prices at the expense of
consumers in a way the welfare standard is reduced...