Access regulation and cross-border mergers : is international coordination beneficial?
Working paper
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http://hdl.handle.net/11250/165480Utgivelsesdato
2005-06Metadata
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The international integration of regulated markets poses new challenges for regulatory policy. One question is the implications that the overall international regulatory regime will have for cross-border and/or domestic merger activity. In particular, do non-coordinated policies stimulate cross-border mergers that are overall inefficient, and is this then an argument for international coordination of such policies? The paper addresses this issue in a setting where firms must have access to a transportation network which is controlled by national regulators. The analysis reveals that while non-coordinated regulatory policies may induce cross-border mergers (by allowing the firms in question to play national regulators out against each other), this can never-theless be overall welfare enhancing compared to market outcomes under coordinated regulation.
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Working paper2005:29