Did robert bork understate the competitive impact of mergers? Evidence from consummated mergers

Orley Ashenfelter, Daniel Hosken, Matthew Weinberg

Research output: Contribution to journalArticle

21 Scopus citations

Abstract

In The Antitrust Paradox, Robert Bork viewed most mergers as either competitively neutral or efficiency enhancing. In his view, only mergers creating a dominant firm or monopoly were likely to harm consumers. Bork was especially skeptical of oligopoly concerns resulting from mergers. In this paper, we provide a critique of Bork’s views on merger policy from The Antitrust Paradox. Many of Bork’s recommendations have been implemented over time and have improved merger analysis. Bork’s proposed horizontal merger policy, however, was too permissive. In particular, the empirical record shows that mergers in oligopolistic markets can raise consumer prices.

Original languageEnglish (US)
Pages (from-to)S67-S100
JournalJournal of Law and Economics
Volume57
Issue numberS3
DOIs
StatePublished - Aug 1 2014

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Law

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