Essays in competition policy
The chapters of this thesis are driven by contemporary competition policy
questions. Although each chapter is self-standing, they all concern the
effect of mergers on competition and pricing. To date one chapter is
complete, it includes a theoretical model which determines the
competitive effects of mergers across hub-and-spoke networks. The
analysis put forward in this thesis upgrade forms the basis of a 2°d chapter.
It translates recent theoretical insights on tacit collusion and asymmetries
onto a graph, which can be used to identify those mergers most likely to
result in coordinated effects. A sample of 73 merger cases investigated by
the European Competition Commission is drawn on, and their model of
tacit coordination unravelled. A third chapter will follow from this
analysis and will incorporate an in-depth case study of a market where
collective dominance was a competition concern. It will examine how the
market has evolved since intervention and test whether the empirical
evidence is consistent with the theory.