Article
Economic analysis in Danish Merger Investigations
A merger investigation may use a wide variety of different economic methods. How does the Danish Competition and Consumer Authority decide upon the most appropriate approach?
Economic models quantify the likely effects of a merger under certain assumptions. More sophisticated models reduce the uncertainty of such quantification at the cost of time and effort spent collecting and analysing more detailed data.
Given the tight time constraints in merger investigations, the Competition and Consumer Authority carefully balances the costs of collecting more data with the benefits of a deeper investigation. This is done on a case-by-case basis, and the choice of methodology depends on the availability of data and how pivotal more advanced quantitative analyses are to the overall assessment of the merger.