n South African Journal of Economic and Management Sciences - On merger simulation and its potential role in South African merger control : law and economics
|Article Title||On merger simulation and its potential role in South African merger control : law and economics|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Author||Liberty Mncube and Hardin Ratshisusu|
|Publication Date||Mar 2010|
|Pages||62 - 75|
|Keyword(s)||C15, K21, L40 and Merger simulation|
ISI Social Science
This paper simulates the price effects of the proposed Ferro Industrial Products (Ferro) and Powder-Lak merger in order to suggest the role that merger simulation models should play in South African merger control. Merger simulation can provide support to the Commission's analysis by: focusing parties' attentions on verifiable economic arguments; making transparent the values of the key parameters and assumptions in the Commission's analysis; producing quantitative estimates of the results of a given transaction; and indicating the amount of resources to allocate to proposed merger cases. However, it offers only one piece of evidence in a case and its results must be interpreted with an understanding of the potential limitations.
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