Bargaining power and market definition: A reflection on two mergers
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Bargaining power and market definition: A reflection on two mergers | |
| Creator | Roberts, Simon Corbett, Catherine das Nair, Reena | |
| Description | When assessing whether a merger is likely to substantially prevent or lessen competition, the Competition Act, No. 89 of 1998, as amended, specifies that the Commission should assess the strength of competition by taking into account the degree of countervailing power in a market. We highlight the importance of understanding this in terms of the factors underlying bargaining power, such as the alternative sources of supply available to buyers, the alternative sources of demand to sellers, cost structures, and information asymmetries. To do this we critically compare the approach adopted by the Competition Tribunal in evaluating two mergers: Sasol/Engen and Chlor-Alkali Holdings/Botash. We find that in both cases an analysis of bargaining power should play an important part in the assessment of the effects on competition, including the identification of competitive constraints that fall within market definition. | |
| Publisher | AOSIS | |
| Date | 2011-08-31 | |
| Identifier | 10.4102/jef.v4i3.371 | |
| Source | Journal of Economic and Financial Sciences; Vol 4, No 3 (2011); 147-166 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/371/452
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