Co-written by an expert lawyer and economist, this book provides a thorough guide to the economic theory behind the regulation of mergers. The economic theory is then used to analyse the current state of European competition law, and test the success of the European Commission's search for a 'more economic approach' to merger regulation.
Law and Economics in European Merger Control provides a thorough introduction to the economic theory underlying the regulation of mergers. The central economic concepts of efficiency and welfare are introduced and their role in the foundations of competition law is explained. Market structures of perfect competition, monopoly and oligopoly are analysed and the methods for delineating and evaluating the effects of mergers on markets are explained. Having examined the economic context, the book then proceeds to offer an exhaustive analysis of the application of economic theory in the practice of merger regulation in Europe. Through an analysis of more than 300 competition cases the book critiques the current state of EC competition law against its economic aims, and offers views for the future development of the law. It also sets out an account of the European Commission's search for a 'more economic approach' to competition law, and analyses the policy's successes and failures.
INTRODUCTION; PART 1: ECONOMIC FOUNDATIONS; Efficiency concepts in economic theory; Competition and efficiency; PART 2: MARKET POWER, MARKET DOMINANCE AND MARKET DEFINITION; Market power and price elasticities; Market power, market dominance and effective competition - economic and legal aspects; Determining market power and market dominance; PART 3: EFFECTS OF CHANGES IN MARKET STRUCTURE; Introduction; Single market dominance; Non-coordinated effects; Coordinated effects and collective dominance; Other factors relevant to the assessment of mergers; Conclusion; LITERATURE