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Partial identification and mergers

Author

Listed:
  • Hahn, Jinyong
  • Ridder, Geert
  • Snider, Connan

Abstract

This paper discusses policy choice under ambiguity in the context of merger simulation. We do so by incorporating the uncertainty about post-merger conduct into a simple merger simulation model. We isolate the problem of uncertainty regarding post-merger conduct by working with a simple “conduct parameters” model in the spirit of Bresnahan (1982) and Lau (1982). We then apply Manski’s (2011) analysis, and discuss policy choice under the maxmin, minimax-regret, and expected utility criteria.

Suggested Citation

  • Hahn, Jinyong & Ridder, Geert & Snider, Connan, 2013. "Partial identification and mergers," Economics Letters, Elsevier, vol. 118(1), pages 126-129.
    • Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:126-129
    DOI: 10.1016/j.econlet.2012.10.006
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    References listed on IDEAS

    as
    1. Lau, Lawrence J., 1982. "On identifying the degree of competitiveness from industry price and output data," Economics Letters, Elsevier, vol. 10(1-2), pages 93-99.
    2. Adam Rosen, 2007. "Identification and estimation of firms' marginal cost functions with incomplete knowledge of strategic behavior," CeMMAP working papers CWP03/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    3. Bresnahan, Timothy F., 1982. "The oligopoly solution concept is identified," Economics Letters, Elsevier, vol. 10(1-2), pages 87-92.
    4. Charles F. Manski, 2011. "Choosing Treatment Policies Under Ambiguity," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 25-49, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Merger simulation; Uncertainty; Conduct; Policy choice;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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