Impact Evaluation of Merger Control Decisions

Introduction:

"Merger control decisions can be wrong in two different ways: (i) merger control decisions may erroneously prohibit procompetitive mergers (type I errors); or (ii) merger control decisions may erroneously allow anticompetitive mergers (type II errors). Both error types change the impact of merger control decisions (compared to error-free decisions). In the case of type II errors, the merger control decision fails to protect competition on the market in question. In the case of type I errors, the merger control decision represents an unnecessary intervention into competition, and the efficiency effects of procompetitive mergers may be discarded."

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