Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9549559 | Economics Letters | 2005 | 5 Pages |
Abstract
A stricter merger control policy increases the expectation of future price competition. In response, firms increase product differentiation to sustain higher prices. Failing to account for such policy-variant prices may lead to overestimation of the increase in consumer surplus due to the stricter merger policy, rendering the policy analysis subject to the Lucas Critique.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sencer Ecer,