Competition and Regulation

Question 1

Motives for a merger

Answer 1

1. Efficiency
2. Market Power
3. Financial or tax efforts
4. Managerial self-interest
5. Shareholder self-interest

Question 2

What are most merger control regimes based on?

Answer 2

To stop the creation of a dominant position which would usually result in a substantial lessening of competition

Question 3

What is a Horizontal Merger

Answer 3

A horizontal merger is one between parties that are competitors at the same level of production or distribution of the same good or service

The vast majority of significant completion issues associated with mergers arises in horizontal mergers

Question 4

3 institutional frameworks of the relevant market

Answer 4

Supply substitution, Demand substitution and potential competition

Question 5

Quantitative techniques

Answer 5

SSNIP, direct price elasticites, cross price elasticites