Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2006 erstellt
Description:
We introduce a simple oligopolistic trade model with international transportation costs, and analyze the profitability and the social desirability of national vs. international mergers in relation to three different issues, (i) the level of trade freeness, (ii) the possibility of rent appropriation on world markets, and (iii) direct quot;synergyquot; effects of mergers. Cross-border Mamp;A is privately and socially more attractive than domestic mergers. National competition policy may be too permissive towards Mamp;A, because it does not take into account the negative impact of decreasing competition on world consumer surplus. We also discuss the normative implications of quot;national championsquot;. The promotion of national mergers can be in the interest of individual countries if rent extraction possibilities are strong enough, but global welfare is adversely affected