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Capacity constraints and irreversible investments: defending against collective dominance in UPM Kymmene/Norske Skog/Haindl

Kühn, Kai-Uwe and Van Reenen, John (2008) Capacity constraints and irreversible investments: defending against collective dominance in UPM Kymmene/Norske Skog/Haindl. Centre for Economic Performance special papers, CEPSP19. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Identification Number: CEPSP19

Abstract

Scrutiny of potential mergers by the European Commission often focuses on unilateral effects or single firm dominance. But some cases have involved concerns over coordinated effects: the concern that the merger could increase the likelihood of consumer harm through tacit collusion by the reduced number of firms in the industry (this is known as collective dominance). The economic and legal issues are far less certain in these cases and a particular challenge is how to bring empirical evidence to bear on the decision. In this chapter we examine a case in newsprint and magazine paper - UPM Kymmene/Norske Skog/Haindl . Here, coordinated effects were at the centre of the Commission’s concerns. We discuss how collusion theory and evidence were used to help clear the merger without remedies in the final Decision.

Item Type: Monograph (Other)
Official URL: http://cep.lse.ac.uk/
Additional Information: © 2008 K-U. Kühn and J. Van Reenen ISBN 9780853282532
Subjects: H Social Sciences > HB Economic Theory
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Series: Working Papers > CEP Special Papers
Date Deposited: 21 Apr 2008 14:55
Last Modified: 23 Nov 2012 13:27
URI: http://eprints.lse.ac.uk/id/eprint/4437

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