THE POTENTIAL FOR SIGNIFICANT INACCURACIES IN MERGER SIMULATION MODELS

This paper considers the role that merger simulation modelsshould play in European merger control. The use of these models,as off-the-shelf instruments to assess the economic effectsof mergers, has become increasingly widespread in recent years.However, contrary to some claims, merger simulation models donot allow investigators to avoid much of the competitive effectsanalysis relating to the relevant economic market, nor do theynecessarily provide more precision to merger control. Withoutunderstanding the limitations of such models and the circumstancesunder which they can and should be usefully applied, they maynot just be useless, but dangerous in the sense of providingpossibly spurious results with spurious claimed accuracy. Thispaper argues that any merger simulation models used should be"bespoke" models, rather than off-the-shelf models, but cautionsthat even bespoke models will frequently not be as useful asis often claimed. This is not to deny that there are occasionswhen well-constructed bespoke models are genuinely useful anddo offer genuine improvements in merger control.     

Absorptive capacity and post-acquisition inventor productivity

Inventors often experience a low productivity after their company has been subject to a merger or acquisition (M&As). It is of central managerial interest to identify factors facilitating the integration of new inventive staff and thereby counteracting innovation declines after M&As. This paper provides empirical evidence into the role of acquiring firms?? absorptive capacity for the post-merger patent productivity of the acquired inventors. Based on a sample of 544 inventors employed by European acquisition targets in the period 2000?C2001 it is shown that the post-merger productivity of acquired inventors is significantly higher within acquiring firms with a distinct absorptive capacity. It can be concluded that absorptive capacity is a firm capability that enhances the integration of inventors after firm takeovers.     

Eu merger control and the compatibility test:a review of recent developments

The compatibility test contained in Article 2 of the Merger Control Regulation (MCR) is at the very heart of EU merger control, for it determines whether a concentration with a community dimension is deemed compatible or incompatible with the common market. Incompatibility can lead to prohibition of a concentration, although this is rare. The paper reviews the recent developments to the conditions of the test itself as well as the analytical methods employed to determine compatibility. Concerning the former, the new foreseeable dominance interpretation, put forward by the European Commission and made law by the Court of First Instance (CFI), is explored. This new variant of the dominance condition is important on its own right but it is also of major interest because of the explicit legal requirement placed on the Commission to assess the future likelihood of abusive behaviour by the merging parties in its prospective analysis. This is not the case with the original dominance compatibility condition. The unexpected but important clarification by the CFI of the notion of substantial part of the common market, as contained in the express wording of the compatibility test, is also commented upon. Concerning the determination of compatibility, the Commission's controversial employment in certain conglomerate concentrations of the range effects of competitive harm theory is examined, as is the need to take cognisance of merger specific efficiencies when determining if a merger increases societal welfare. The EU is making progress toward such an efficiencies assessment as part of the compatibility determination. EU merger control – and hence the compatibility test – do not exist in a vacuum. The EU has played a major role in shaping the new multilateral architecture and its goal of increasing international convergence in competition matters. This in turn has led the EU to rethink the nature of the compatibility test. For example, it has sought to evaluate the dominance condition of the compatibility test with the substantial lessening of competition (SLC) approach used by some other regulators, like the US. The paper concludes by looking at a fundamental issue that has arisen from recent CFI judgements and the GE/Honeywell merger: the competence of the Commission, or more accurately the Merger Task Force (MTF), to carry out the compatibility determination. Proposals are outlined so as to ensure that the Commission's prospective analysis in a concentration case meets the requisite legal standard. It is essential for this standard to be met if EU merger control is to remain credible. This revised version was published online in July 2006 with corrections to the Cover Date.     

Merger simulations with observed diversion ratios

One approach to merger simulations used in antitrust cases is to calibrate demand from market shares and a few additional parameters. When the products involved in the merger case are differentiated along several dimensions, actual diversion ratios may be very different from those calculated from market shares. This again may affect the predicted post-merger price effects. This article shows how merger simulation can be performed using observed diversion ratios. To illustrate the potential effects of this approach we use diversion ratios from a local grocery market in Norway. In this case diversions from the acquired to the acquiring stores were considerably smaller than suggested by market shares, and the predicted average price increase from the acquisition was 40% lower using this model rather than a model based upon market shares. This analysis also suggests that even a subset of observed diversion ratios may significantly change the prediction from a merger simulation based upon market shares.     

MEDIATION AND CHILD PROTECTION

Mediation as a means of resolving disputes in child welfare (protection) proceedings is relatively new. Mediation as a process has been gaining recognition in almost every area of conflict or contest. It is not surprising, therefore, that its movement into taboo areas such as child welfare matters has occurred. This article focuses on how mediation in this once forbidden area is not only feasible but beneficial. Based on actual case mediations and comments, it will be shown that mediation in this area is necessary and long overdue. A blueprint and criteria will be provided to practitioners in this area as guidelines to be followed.     

The development of care technology under liability law

It is well known that strict liability and negligence induce pareto optimal care in a most restrictive model of unilateral accidents. The paper at hand extends this traditional theorem from its static context to an intertemporal setting where tort law induces progress in care technology. This model provides a methodological framework for a general analysis of the dynamic incentives generated by alternative liability rules. One of the many possible extensions of the basic model is to allow for incomplete information. Particularly, we drop the assumption that the authority setting the due care standard under negligence is able to assess technical progress ex ante. It is shown that the dynamic incentives of the negligence rule are distorted compared to strict liability in this modified framework.     

Mergers and difference-in-difference estimator: Why firms do not increase prices?

Difference-in-difference methods are being increasingly used to analyze the impact of mergers on pricing and other market equilibrium outcomes. Using evidence from an exogenous merger between two retail gasoline companies in a specific market in Spain, this paper shows how concentration did not lead to a price increase. In fact, the conjectural variation model concludes that the existence of a collusive agreement before and after the merger accounts for this result, rather than the existence of efficient gains. This result may explain empirical evidence reported in the literature according to which mergers between firms do not have significant effects on prices.     

EU Merger Control: From Separate Jurisdictional Zones to a More Cooperative Architecture—A Possible Way Forward?

The paper is a call to re-ignite the debate over the future shape of the EU’s concentration or merger control architecture in the longer-term. The paper contributes to this debate by considering the efficacy of replacing the current merger control architecture of separate jurisdictional zones with a more cooperative approach. It demonstrates that the adoption of the cooperative architecture would result in a number of benefits relative to the operation of the current architecture. For in effectively resolving a major problem that has dogged the operational effectiveness of the current architecture since it became law in 1990, the misallocation problem, the proposed architecture would also lead to a strengthening of the application of the principle of subsidiarity in this field, be supportive of the reinterpreted more appropriate authority goal, and resolve the multiple notification issue. Further, by ending the multiple notification issue, the valued one-stop shop approach to merger regulation would be reinforced. Yet the paper recognises that the cooperative architecture itself is not concern free, for the cooperative approach in granting Member state regulators the right for the first time to apply EU merger law, albeit in certain circumstances only, creates the possibility of inconsistent decision-making across this network. This would distort the regulatory level playing field, undermining what the architecture is supposed to guarantee, the Single European Market. With this in mind, necessary safeguards are explained. The paper concludes by briefly commenting upon key systems that need to be in place to ensure the operational effectiveness of the cooperative architecture. Of course, and at the cost of stating the obvious, improving the protection of competition in the field of merger control in the longer-term requires a willingness on the part of the key stakeholders to look beyond the current architecture of separate jurisdictional zones.     

The ADA on the Road: Disability Rights in Germany

This paper examines the impact of a "disability rights model" on the emerging disability rights movement in Germany. Traditional German disability politics and activism are based on the expansion of welfare and special needs provisions rather than on equal rights and integration. Inspired by the 1990 Americans with Disability Act, German activists adopted a disability rights model and successfully worked toward the passage of a constitutional equality amendment in 1994 and ant-discrimination legislation in 2002. Using the literature on rights mobilization, this paper argues that German disability activists use rights talk to both support and contest culturally specific approaches to disability rights, equal treatment, and the role of the state in guaranteeing welfare rights. The globalization of disability rights should not be viewed as an imposition of American norms but as a more complex process of adaptation and cultural transformation that involves constructing locally legitimate approaches to disability rights with an American import.     

Horizontal mergers and efficiencies; theory and anti trust practice

Horizontal mergers can be challenged by anti trust authorities under both the US and EU Horizontal Merger Guidelines. More horizontal mergers are unconditionally approved in the US than in the EU. EU merger policy toughened after 1998 but became more in line with US practices after 2004. Differences in merger policies between the US and the EU can be explained by a greater scope of the efficiency argument in the US. The paper argues that firms only want to merge in oligopoly, if they expect to realize substantial merger specific efficiency gains, which counterbalances the price increasing effect of merger.      

Reflections on recent trends towards the punishment of persistence

This paper provides an overview of an emerging and important trend in modern penality, the punishment of persistent offending. It argues that what lies behind this new development is a merger of the right to protection (itself an overarching theme of penal policy) and the implications for risk management of shifting political rationalities in the last two decades.     

What prompts health care policy change? On political power contests and reform of health care systems (the case of Canada and Israel)

This article attempts to shed light on the complexity inherent in health care reform policies in the context of political power contests that trigger the changes imposed on the health care system. Rather than being solely a response to financial circumstances, as it is often claimed, we argue that these political contests lead to many of the changes in the systems. Furthermore, changes do not necessarily occur when worrying symptoms appear in the system, but rather when the contest reaches a peak and when neither side involved can emerge from the contest as winner or loser and as defender of the public interest. While in both cases fiscal problems in the health systems are usually brought up in order to justify reform, the trigger for change in Israel has been the power contest between the two main parties--the Labor Party and the Likud Party--with the Likud attempting to impair the financial basis of the former. In Canada, the power contests are between the provinces and the federal government.     

Horizontal mergers, efficiency gains and remedies

The combination of structural remedies and efficiency gains in a merger may lead to pro-competitive outcomes, thus maintaining pre-merger prices. Two types of efficiencies are necessary. The first corresponds to a flatter marginal cost function, the second to a decrease in the intercept of the marginal cost curve. If these efficiency gains are not sufficient to keep the post-merger price at the pre-merger level, then divestitures by the resultant merged entity are adopted. This paper allows a comparison between two kinds of divestitures and it can be shown that, depending on the efficiency gains, divested capital distributed among the remaining competitors in the market is optimal when compared to divested capital being placed on the hands of a single competitor.     

Market structures,political surroundings,and merger remedies: an empirical investigation of the EC’s decisions

This paper aims to build and empirically evaluate a discrete choice model of merger remedies as a basis for policy analysis. The database consists of 229 merger cases accepted in Phase I or Phase II of the European merger process between 1990 and 2005. We focus on the following question: Which merging firms’ characteristics lead the European Commission to decide whether to require conditional acceptance? Although a lot of empirical studies have been carried out these last years, ours is distinguished by at least two original features. First, we explore determinant factors of the Commission’s decisions with a neural network model differentiating cases accepted with or without remedies (either structural or behavioral). Secondly, we implement three multinomial logit models. We find that variables related to high market power lead more frequently to a remedy outcome, no matter the phase. Innovative industries such as energy, transportation and communications positively affect the probability of a behavioral remedy. Lastly, former Competition Commissioner Mario Monti’s policy appears to be pro-remedy, i.e. seeking concessions from merging parties.     

Hospital mergers and antitrust: an economic analysis

The hospital industry has recently experienced substantial merger activity. This paper examines several actual and proposed hospital mergers to determine the extent of competition in the affected markets and the effect these mergers may have on competition. Our focus is on mergers between hospitals in the same market. We define the relevant product and geographic market for hospitals, then develop criteria for evaluating hospital mergers and analyze several merger cases using these criteria. We conclude that these mergers threaten the competition that exists in most of the markets discussed, and that the claimed efficiency justification for mergers is not convincing.     

城市反恐重要目标安全防范试点与研究

“9·11”以来,国际恐怖活动与反恐斗争的较量已经持续了十余年,但以全球化为背景的恐怖主义威胁不仅没有消失,反而持续存在且更加突出.“三股势力”和由于各种原因导致的个体暴力恐怖威胁将成为今后相当长一段时间内影响我国安全与稳定的主要因素.借鉴国内外相关研究和城市反恐试点单位的成功做法,提出如下对策建议：一是建立党政领导,部门参与的反恐防范工作格局;二是加强防范恐怖犯罪公众教育,增强公众的防范意识;三是建立统一高效的情报信息工作机制;四是明确责任,建章立制,夯实基础;五是制定应对预案,通过演练予以巩固完善;六是强化检查考核,促进防范责任和措施落实.     

The role of the Asia Pacific Partnership in discursive contestation of the international climate regime

After withdrawing from the Kyoto Protocol, the US Bush Administration and the Australian Howard Government pursued an international climate change policy focussed on voluntary international agreements outside the UN climate negotiations. This strategy included the formation of several climate agreements directed at technology development, including the 2005 Asia Pacific Partnership on Clean Development and Climate (APP). The APP provides a model for international climate change policy directed at voluntary national greenhouse gas intensity targets, technology development through sectoral public–private partnerships and technology diffusion through trade. This article situates the APP within these US and Australian inspired climate agreements formed outside the UN negotiations. Bäckstrand and Lövbrand’s (in M. Pettenger (ed.) The social construction of climate change: power knowledge norms discourses, 2007) discourse analysis in relation to the international climate negotiations is used to explore differences between the APP and UN climate treaties. We find the APP embodies a discourse of what we call ‘deregulatory ecological modernisation’ that promotes limited public funding to ease informational failures in markets for cleaner technologies and management practices. The deregulatory ecological modernisation discourse is a deeply intensive market liberal approach to international climate change policy, which contests binding emission reduction targets and the development of a global carbon market. The USA, Australia, Japan and Canada represented a core group of countries that used the APP to promote the deregulatory ecological modernisation discourse and thereby contest any deepening of developed nations' emission reduction targets for the post-2012 period. However, with changes of leadership and new parties in power in the USA and Australia, it appears that the deregulatory ecological modernisation discourse has lost ground compared to a reengagement with discourses supportive of developed country emission reduction targets and equity-based adaptation and technology transfer assistance for developing nations.     

欧盟法对企业合并的规制

企业合并是当今各国优化产业结构和企业组织结构的重要手段,也是企业迅速扩张、提高规模经济效益和国际竞争力的有效手段.然而,经济力量的集中和由此导致的市场结构的改变,容易产生或加强市场支配力量,从而起到排除或限制竞争的作用.为了防止企业通过并购实现或加强市场支配地位,维护市场上的竞争秩序,对一定规模以上的企业并购交易进行反垄断审查,已成为市场经济国家设计和实施反垄断法的通行做法.目前,已有七十多个国家建立了企业并购控制机制.其中十分引人注目的是,欧盟于上世纪90年代初建立了企业合并控制机制,并于2004年进行了改革.到目前为止,欧盟竞争总司作出的并购审查决定已达两千多件,在此过程中积累了丰富的经验.拟对欧盟企业合并控制制度的建立、理论、程序及实体规则进行研究,并就中国企业合并控制制度的现状及发展提出自己的看法.     

A Contest for Legitimacy: The Divestment Movement and the Fossil Fuel Industry

The divestment movement has sought to influence attitudes to fossil fuels by framing producer companies as pariahs and as unnecessary and redundant. In response, the fossil fuel industry has engaged in a direct and aggressive attack on the divestment movement. This article considers the relationship between the movement and the industry as a contest for legitimacy for both the organizations and the norms they advocate. Through a case study of the coal discourse in Australia from 2013 to 2016, it explores how each party has attempted to undermine the other's legitimacy and to build or defend its own. It concludes that the contest for legitimacy is complex, being conducted at multiple levels (pragmatic, moral, legal, and cognitive) and before multiple audiences. For the movement to “win” the contest, it will require more than a simple rebalancing of the legitimacy scales.     

Criminal Prosecutions: Examining Prosecutorial Discretion and Charge Reductions in U.S. Federal District Courts

The role of the prosecutor in criminal punishments remains a fervent topic of criminal justice discourse, yet it has received limited empirical attention, particularly for U.S. Attorneys in federal district courts. The present study examines charging and sentencing outcomes in federal courts by combining charging data from the Administrative Office of the U.S. Courts with sentencing data from the U.S. Sentencing Commission. The merger of these data sources overcomes limitations of each and provides for an investigation of the causes and consequences of federal prosecutorial charging decisions. Our investigation focuses on the subtle but important influences that extralegal offender characteristics exert in this process. Results indicate that some extralegal characteristics are intricately tied to the likelihood of charge reductions. Moreover, these effects sometimes interact to produce compound disadvantages for some groups of offenders. Our analyses are guided by contemporary theoretical perspectives on courtroom decision‐making.