Rights:
The original publication is available at www.springerlink.com
Abstract:
In this paper we analyze the implementation of socially optimal mergers
when the regulator is not informed about all parameters that determine social
and private gains from potential mergers.We show that implementation requires a
certain degree of agreement beIn this paper we analyze the implementation of socially optimal mergers
when the regulator is not informed about all parameters that determine social
and private gains from potential mergers.We show that implementation requires a
certain degree of agreement between social and private incentives. The most important
example where this congruence is present is when the uncertainty refers to
cost savings, because in this case society and firms want costs savings to be as high
as possible. Then, it is possible to induce firms to truthfully reveal the costs savings
induced by the merger.[+][-]