I study the predictability of the EC’s merger decision procedure before and after the 2004 merger policy reform based on a dataset covering all affected markets of mergers with an official decision documented by DG Comp between 1990 and 2014. Using the highly flexible, non-parametric random forest algorithm to predict DG Comp’s assessment of competitive concerns in markets affected by a merger, I find ...
The German and French economics ministers have introduced a Franco-German manifesto for a 21st century European industrial policy. Tomaso Duso, competition economist and head of the Firms and Markets Department at the German Institute for Economic Research (DIW Berlin), comments as follows:
In many dynamic decision problems, the relevant market prices and budget constraints are random variables whose realizations lie in the future. This makes optimal decision-making difficult as optimality requires an accurate quantification and interpretation of the dynamic processes operating in the market. The studies in this project model and test the agents’ expectations about relevant...
This is an online seminar using Webex. You will receive the login data with the invitation to the talk. Abstract: Common ownership – the horizontal shareholdings of the same institutional investors in at least two firms of an industry- is an increasing global phenomenon. It is a hot topic in industrial organization and competition policy. The Common Ownership Hypothesis...
Many industries are seeing an increase in concentration, leading to a discussion on the effectiveness of horizontal merger enforcement. The policy debate shows that one of the key arguments put forward when supporting potential mergers is the possibility of realization of merger efficiency gains, specifically in the transport industry. Yet, there exists little empirical evidence on the actual effects ...
Abstract: In this paper, we analyze bidding groups that participate in procurement auctions. Our main question is to ask, whether in the absence of the joint bid, there could have been two or more independent bids and if yes, these bids yield a different final outcome. We utilize data from the Austrian construction sector and estimate models of first-price sealed-bid auctions with endogenous entry...
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