The Effects of FTC Antitrust Challenges on Rival Firms 1981-1987: An Analysis of the Use of Stock Returns to Determine the Competitive Effects of Horizontal Mergers

Authors:
Laurence Schumann

The study examines recent FTC merger enforcement and uses stock market evidence to confront prior research which argued that the FTC tended to challenge pro-competitive mergers. The study finds that the evidence is equally consistent with the FTC challenging mergers that simultaneously have both pro-competitive and anti-competitive effects.