Structural remedies as a signaling device

摘要

We analyze the effects of structural remedies on merger activity when the Antitrust Agency (AA) cannot observe a proposed merger's efficiency type. Provided the AA follows a consumer surplus standard, an efficient merger type is doomed to over-fix with its divestiture proposal in a pooling equilibrium, which is also possible under separation. (C) 2016 Elsevier B.V. All rights reserved.