Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, May 25, 2018

Should Profit Margins Play a More Decisive Role in Merger Control? - A Rejoinder to Jorge Padilla

Tommaso M. Valletti, Imperial College Business School; University of Rome, Tor Vergata - Department of Financial and Quantitative Economics; Centre for Economic Policy Research (CEPR) and Hans Zenger, European Union - Directorate General for Competition ask Should Profit Margins Play a More Decisive Role in Merger Control? - A Rejoinder to Jorge Padilla.

ABSTRACT: According to empirical research, recent times have seen a significant increase in firms' profit margins. Higher profit margins are a reflection of increased pricing power. 
Prospective mergers are more likely to cause competition concerns the higher firms' pricing power is to begin with.

https://lawprofessors.typepad.com/antitrustprof_blog/2018/05/should-profit-margins-play-a-more-decisive-role-in-merger-control-a-rejoinder-to-jorge-padilla.html

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