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The research aims to assess whether merger remedies, specifically divestitures, are beneficial or harmful.

Can merger remedies cause more harm than good?

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The research aims to assess whether merger remedies, specifically divestitures, are beneficial or harmful.
Estimated a model of firm conduct using data from the US beer market
Analyzed the effects of a significant divestiture event
Conducted counterfactual simulations of mergers with and without divestitures
Price coordination reduces the pro-competitive effects of divestitures by 80% to 133%
Merger approvals with divestitures can lead to lower consumer surplus compared to those without
The model suggests that intended welfare gains from divestitures may be outweighed by negative effects.

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This article investigates merger remedies and finds they may reduce consumer surplus more than expected.

Yann Delaprez (2026) studied this question.

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