The merger clearance decision process in New Zealand: : application of a new two-stage probit model

• Autores: Qing Yang, Michael Pickford
• Localización: Review of Industrial Organization, ISSN-e 1573-7160, Vol. 44, Nº. 3, 2014, págs. 299-325
• Idioma: alemán
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• Resumen

  • This paper analyses empirically the factors that influence the merger decision-making process of the New Zealand Commerce Commission using discrete-choice econometric modelling. Previous studies in various countries have typically modelled this process as involving a single step, even when a formal two-step process is actually used. We apply a new approach that treats merger decision-making as a two-step process, and compare the results with those from applications of the conventional one-step and ordered probit models. We expect the new approach to avoid biases inherent in the previous models, and therefore to produce statistically superior results