Search -
#90 The Cost of Merger Delay in Restructuring Industries
90 The Cost of Merger Delay in Restructuring Industries Author:Robert Ekelund Jr., Ph.D., Mark Thornton Regulatory review of proposed mergers causes an average delay of 94 days in nonregulated industries and an additional 92 days in regulated industries. These delays are caused by a multiplicity of government agencies with review authority, the political nature of antitrust law enforcement, and the motives of competitors and firms being acquired. ... more » Because most mergers are efficient and socially beneficial, these delays cause social harms. Our rough calculation of these costs is $12 billion in 1996.« less