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The Merger Clearance Decision Process in New Zealand: Application of a New Two-Stage Probit Model

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  • Qing Yang
  • Michael Pickford

Abstract

This paper analyses empirically the factors that influence the merger decision-making process of the New Zealand Commerce Commission using discrete-choice econometric modelling. Previous studies in various countries have typically modelled this process as involving a single step, even when a formal two-step process is actually used. We apply a new approach that treats merger decision-making as a two-step process, and compare the results with those from applications of the conventional one-step and ordered probit models. We expect the new approach to avoid biases inherent in the previous models, and therefore to produce statistically superior results. Copyright Springer Science+Business Media New York 2014

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  • Qing Yang & Michael Pickford, 2014. "The Merger Clearance Decision Process in New Zealand: Application of a New Two-Stage Probit Model," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 44(3), pages 299-325, May.
    • Handle: RePEc:kap:revind:v:44:y:2014:i:3:p:299-325
    DOI: 10.1007/s11151-013-9404-x
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    1. Michael Pickford & Qing Gong Yang, 2014. "Comparing merger enforcement across jurisdictions -- New Zealand versus the European Union and the United States," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(1), pages 72-95, April.
    2. Diego S. Cardoso & Mariusa M. Pitelli & Adelson M. Figueiredo, 2021. "An Econometric Analysis of the Brazilian Merger Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(1), pages 103-132, August.
    3. Pu†yan Nie, 2018. "Comparing Horizontal Mergers Under Cournot with Bertrand Competitions," Australian Economic Papers, Wiley Blackwell, vol. 57(1), pages 55-80, March.

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