Thursday, February 23, 2017
Michael Vita, U.S. Federal Trade Commission - Bureau of Economics and F David Osinski, Federal Trade Commission have an attack on John Kwoka's Mergers, Merger Control, and Remedies: A Critical Review.
ABSTRACT: John Kwoka’s recently published Mergers, Merger Control, and Remedies (2015) has received considerable attention from both antitrust practitioners and academics. The book features a meta-analysis of retrospective studies of consummated mergers, joint ventures, and other horizontal arrangements. Based on summary statistics derived from these studies, Kwoka concludes that domestic antitrust agencies are excessively tolerant in their merger enforcement; that merger remedies are ineffective at mitigating market power; and that merger enforcement has become increasingly lax over time. We review both his evidence and his empirical methods, and conclude that serious deficiencies in both undermine the basis for these conclusions.