To what extent can we rely on contestability in merger policy? Ex post evidence from McGill’s/AWS

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Series Details Volume 12, Number 2-3, Pages 409-434
Publication Date June 2016
ISSN 1744-1056
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Abstract:

The McGill’s/AWS merger was cleared by the UK Competition Commission mainly on the basis of its belief that the threat of entry would be sufficient to prevent unilateral effects from arising post-merger. This is very close to argue that these local bus markets were contestable. This ex post evaluation case study based on the publicly available data and information on frequencies and fares suggests that the entry threat may have not been a strong disciplining force post-merger.

Source Link https://doi.org/10.1080/17441056.2017.1289707
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