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TABLE OF CONTENTS |
5 |
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PREFACE |
11 |
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CHAPTER I PREDICTABILITY AS A CRUCIAL CONDITION FOR ECONOMIC GROWTH AND DEVELOPMENT |
12 |
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1. INTRODUCTORY REMARKS |
12 |
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2. SOME THEORETICAL CONSIDERATIONS CONCERNING PREDICTABILITY |
12 |
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3. SOME EMPIRICAL RESULTS CONCERNING PREDICTABILITY |
14 |
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4. THE PREDICTABILITY OF EUROPEAN MERGER POLICY |
16 |
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4.1. A Survey Amongst Large European Firms |
19 |
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4.1.1. Before Notification |
20 |
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4.1.2. After notification |
21 |
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5. PROPOSALS FOR IMPROVING PREDICTABILITY |
22 |
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CHAPTER II DEVELOPMENTS IN COMPETITION THEORY |
24 |
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1. INTRODUCTORY REMARKS |
24 |
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2. THE HARVARD APPROACH |
24 |
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2.1. Main Points |
25 |
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2.2. Policy Implications |
27 |
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2.3. Critique |
27 |
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3. THE CHICAGO APPROACH |
29 |
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3.1. Main Points |
29 |
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3.2. Policy Implications |
31 |
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3.3. Critique |
32 |
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4. CONTESTABILITY THEORY |
33 |
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4.1. Main Points |
33 |
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4.2. Policy Implications |
35 |
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4.3. Critique |
35 |
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5. THE CONTRIBUTION OF GAME THEORY: THE NEW INDUSTRIAL ORGANISATION |
35 |
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5.1. Game Components |
36 |
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5.2. Advantages of Using Game Theory in Competition Theory |
36 |
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5.3. Critique Concerning the Use of Game Theory in f Competition Theory |
38 |
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6. THE CONTRIBUTION OF THE NEW INSTITUTIONAL ECONOMICS: TRANSACTION COST ECONOMICS |
39 |
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6.1. Transactions and Transaction Costs |
40 |
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6.2. Assumptions of Transaction Cost Economics f |
41 |
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6.3. Policy Implications |
43 |
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7. IN LIEU OF A SUMMARY: CONSENSUS AND DISSENSUS BETWEEN THE VARIOUS APPROACHES |
45 |
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CHAPTER III TRENDS IN THE BUSINESS ENVIRONMENT |
50 |
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1. LIBERALISATION AS A DRIVING FORCE OF GLOBALISATION |
51 |
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1.1. General Trends |
51 |
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1.1.1. Liberalisation within nation-states |
52 |
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1.1.2. Liberalisation by regional integration |
53 |
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1.1.3. Liberalisation on a worldwide scale |
53 |
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1.2. Sector-Specific Liberalisation |
54 |
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1.2.1. Liberalisation of goods markets |
54 |
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1.2.2. Liberalisation of capital markets |
55 |
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1.2.3. Facilitation of Foreign Direct Investment |
55 |
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1.2.4. Liberalisation of service markets |
56 |
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2. ECONOMIC AND TECHNOLOGICAL FACTORS |
56 |
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2.1. Rapid Technological Change |
56 |
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2.2. Increasing Mobility of Supply |
57 |
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2.3. Developments in Transport Costs |
57 |
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2.4. The Internet |
58 |
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2.5. Homogenisation of Preferences |
60 |
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2.6. Rapid Change of Consumption Patterns |
61 |
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3. CONCLUSIONS |
61 |
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CHAPTER IV POSSIBLE CONSEQUENCES OF TRENDS IN THEORY (B) AND DEVELOPMENTS IN BUSINESS (C) FOR COMPETITION POLICY |
64 |
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1. INTRODUCTION |
64 |
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2. FROM MARKET DEFINITION TO ASSESSING DOMINANCE |
65 |
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2.1. The Standard Approach |
65 |
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2.1.1. The relevant product market |
66 |
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2.1.2. The relevant geographic market |
67 |
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2.1.3. Defining relevant markets in practice: the hypothetical monopolist test |
68 |
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2.1.4. Predicting the post-merger structure |
68 |
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2.1.5. Assessing Single Dominance |
69 |
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2.2. Consequences of Recent Theoretical Developments |
71 |
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2.3. Consequences of Recent Trends in Business Environment |
72 |
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2.4. Current EU Practice |
74 |
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2.4.1. The Relevant Product Market |
74 |
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2.4.2. The Relevant Geographic Market |
77 |
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2.4.3. Assessing Dominance |
79 |
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2.5. Proposals Towards Enhancing Predictability |
82 |
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2.5.1. Simple Tools |
83 |
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2.5.2. Improvements Due to Theoretical Developments |
90 |
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2.5.3. Improvements Due to Trends in the Business Environment |
97 |
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3. A CLOSER LOOK AT BARRIERS TO ENTRY AND CONTESTABILITY |
98 |
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3.1. The Standard Approach |
98 |
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3.2. Consequences of Recent Theoretical Developments |
102 |
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3.3. Consequences of Recent Trends in the Business Environment |
104 |
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3.4. Current EU Practice |
105 |
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3.5. Proposals Towards Enhancing Predictability |
108 |
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4. ASSESSING COLLECTIVE DOMINANCE |
111 |
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4.1. Standard Approach |
113 |
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4.2. Recent Theoretical Developments |
115 |
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4.3. Recent Trends in the Business Environment |
119 |
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4.4. Current EU Practice |
121 |
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4.5. Reform Proposals |
124 |
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CHAPTER V CASE STUDIES |
130 |
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1. ASSESSMENT OF BARRIERS TO ENTRY IN EUROPEAN MERGER CONTROL: THE CASES OF VOLVO/SCANIA, MERCEDESBENZ/ KÄSSBOHRER, AND MAN/AUWÄRTER |
131 |
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1.1. Barriers to Entry in the Case of MERCEDES-BENZ/KÄSSBOHRER |
131 |
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1.2. Barriers to Entry in the Case of VOLVO/SCANIA |
133 |
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1.2.1. The Market for Heavy Trucks |
133 |
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1.2.2. The Market for Buses |
134 |
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1.3. MAN/AUWÄRTER |
135 |
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1.4. Economic Assessment |
136 |
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2. ASSESSMENT OF BARRIERS TO ENTRY IN EUROPEAN MERGER CONTROL: THE CASES OF SCA/METSÄ TISSUE AND SCA HYGIENE PRODUCTS/CARTOINVEST |
140 |
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2.1. Barriers to Entry in SCA/METSÄ TISSUE |
140 |
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2.2. Barriers to Entry in SCA HYGIENE PRODUCTS/CARTOINVEST |
142 |
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2.3. Comparison of the Decisions |
143 |
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2.4. Economic Assessment |
143 |
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3. ASSESSMENT OF BARRIERS TO ENTRY IN EUROPEAN MERGER CONTROL: THE CASE OF BASF/BAYER/HOECHST/DYSTAR |
147 |
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3.1. Barriers to Entry in the Case of BASF/BAYER/HOECHST/DYSTAR |
148 |
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3.2. Economic Assessment |
149 |
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4. THE ASSESSMENT OF BARRIERS TO ENTRY IN EUROPEAN MERGER CONTROL: THE MARKETS FOR TELECOMMUNICATIONS IN THE CASE OF TELIA/TELENOR |
150 |
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4.1. The Special Conditions for Entry in the Markets for Telecommunications |
151 |
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4.2. The Case of TELIA/TELENOR |
153 |
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4.3. Assessment of the Decision |
155 |
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5. COLLECTIVE DOMINANCE UNDER THE EUROPEAN MERGER REGULATION |
157 |
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5.1. NESTLÉ/PERRIER (1992) |
157 |
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5.2. KALI&SALZ/MDK/TREUHAND (1993) |
160 |
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5.3. GENCOR/LONRHO (1996) |
161 |
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5.4. EXXON/MOBIL (1999) |
163 |
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5.5. AIRTOURS/FIRST CHOICE (1999) |
165 |
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5.6. UPM-KYMMENE/HAINDL and NORSKE SKOG/PARENCO/WALSUM (2001) |
168 |
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CHAPTER VI PRACTICAL PROPOSALS |
172 |
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1. INTRODUCTORY REMARKS |
172 |
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2. OVERVIEW OF SUBSTANTIVE PROPOSALS AS DEVELOPED IN CHAPTER IV |
172 |
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3. PROCEDURAL PROPOSALS |
177 |
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4. CONCLUSIONS AND OUTLOOK |
186 |
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APPENDIX |
188 |
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ENDNOTES |
192 |
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REFERENCES |
196 |
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INDEX |
202 |
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