[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/bla/jcmkts/v47y2009i3p483-506.html
   My bibliography  Save this article

Incomplete Contracting, Commission Discretion and the Origins of EU Merger Control

Author

Listed:
  • THOMAS DOLEYS
Abstract
Council Regulation 4064/89 on the Control of Concentration between Undertakings– more commonly known as the Merger Regulation – was a watershed development in the evolution of the EU's competition policy regime. In this article we seek to cast new analytical light on what, in many respects, is an established narrative. To do this we draw on insights from the new institutional economics (NIE). Specifically, we draw on the complementary concepts of incomplete contracting and delegation. We demonstrate how the Commission utilized the discretion attendant to its delegated authority to interpret and apply the indeterminate language of treaty competition articles so as to alter the economic, political and legal environment as it pertained to merger activity. It did so to such an extent that Member States, long resistant to Commission proposals for a merger control regulation, came to regard legislative action as preferable to the uncertainty represented by the evolving status quo.

Suggested Citation

  • Thomas Doleys, 2009. "Incomplete Contracting, Commission Discretion and the Origins of EU Merger Control," Journal of Common Market Studies, Wiley Blackwell, vol. 47(3), pages 483-506, June.
    • Handle: RePEc:bla:jcmkts:v:47:y:2009:i:3:p:483-506
    DOI: 10.1111/j.1468-5965.2009.01813.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-5965.2009.01813.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-5965.2009.01813.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Crombez, Christophe, 1996. "Legislative Procedures in the European Community," British Journal of Political Science, Cambridge University Press, vol. 26(2), pages 199-228, April.
    2. Moravcsik, Andrew, 1991. "Negotiating the Single European Act: national interests and conventional statecraft in the European Community," International Organization, Cambridge University Press, vol. 45(1), pages 19-56, January.
    3. Giandomenico Majone, 2001. "Two Logics of Delegation," European Union Politics, , vol. 2(1), pages 103-122, February.
    4. Weingast, Barry R & Marshall, William J, 1988. "The Industrial Organization of Congress; or, Why Legislatures, Like Firms, Are Not Organized as Markets," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 132-163, February.
    5. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    6. Pollack, Mark A., 2003. "The Engines of European Integration: Delegation, Agency, and Agenda Setting in the EU," OUP Catalogue, Oxford University Press, number 9780199251179.
    7. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    8. Garrett, Geoffrey & Tsebelis, George, 1996. "An institutional critique of intergovernmentalism: erratum," International Organization, Cambridge University Press, vol. 50(3), pages 539-539, July.
    9. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    10. Garrett, Geoffrey & Tsebelis, George, 1996. "An institutional critique of intergovernmentalism," International Organization, Cambridge University Press, vol. 50(2), pages 269-299, April.
    11. Andrew Moravcsik, 1993. "Preferences and Power in the European Community: A Liberal Intergovernmentalist Approach," Journal of Common Market Studies, Wiley Blackwell, vol. 31(4), pages 473-524, December.
    12. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    13. Yarbrough, Beth V. & Yarbrough, Robert M., 1990. "International institutions and the new economics of organization," International Organization, Cambridge University Press, vol. 44(2), pages 235-259, April.
    14. Lake, David A., 1996. "Anarchy, hierarchy, and the variety of international relations," International Organization, Cambridge University Press, vol. 50(1), pages 1-33, January.
    15. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    16. Moe, Terry M, 1990. "Political Institutions: The Neglected Side of the Story," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 6(0), pages 213-253.
    17. Pollack, Mark A., 1997. "Delegation, agency, and agenda setting in the European Community," International Organization, Cambridge University Press, vol. 51(1), pages 99-134, January.
    18. Jonas Tallberg, 2000. "The Anatomy of Autonomy: An Institutional Account of Variation in Supranational Influence," Journal of Common Market Studies, Wiley Blackwell, vol. 38(5), pages 843-864, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bla:jcmkts:v:47:y:2009:i::p:483-506 is not listed on IDEAS
    2. James J. Chrisman & Kristen Madison & Taewoo Kim, 2021. "A Dynamic Framework of Noneconomic Goals and Inter-Family Agency Complexities in Multi-Family Firms," Entrepreneurship Theory and Practice, , vol. 45(4), pages 906-930, July.
    3. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    4. Alexander Brink, 2010. "Enlightened Corporate Governance: Specific Investments by Employees as Legitimation for Residual Claims," Journal of Business Ethics, Springer, vol. 93(4), pages 641-651, June.
    5. Ellen Mastenbroek & Tim Veen, 2008. "Last Words on Delegation?," European Union Politics, , vol. 9(2), pages 295-311, June.
    6. Nicolai J. Foss & Peter G. Klein & Lasse B. Lien & Thomas Zellweger & Todd Zenger, 2021. "Ownership competence," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 302-328, February.
    7. Grillet, Luc L., 1991. "Insurance hedging in the theory of the firm," Discussion Papers, Series II 166, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    8. Boatright, John R., 2002. "Contractors as stakeholders: Reconciling stakeholder theory with the nexus-of-contracts firm," Journal of Banking & Finance, Elsevier, vol. 26(9), pages 1837-1852, September.
    9. Baarda, James R., 2003. "Current Law & Economics Debates: Tools for Assessing Fundamental Cooperative Changes?," 2003 Annual Meeting, October 29 31802, NCERA-194 Research on Cooperatives.
    10. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    11. Kenneth Ayotte & Patrick Bolton, 2011. "Optimal Property Rights in Financial Contracting," The Review of Financial Studies, Society for Financial Studies, vol. 24(10), pages 3401-3433.
    12. Iavor Marangozov, 2005. "From Practice to Theory of the International Joint Ventures," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 44-77.
    13. José Luis Castro-Montero & Edwin Alblas & Arthur Dyevre & Nicolas Lampach, 2018. "The Court of Justice and treaty revision: A case of strategic leniency?," European Union Politics, , vol. 19(4), pages 570-596, December.
    14. Brian Efird & Gaspare M. Genna, 2002. "Structural Conditions and the Propensity for Regional Integration," European Union Politics, , vol. 3(3), pages 267-295, September.
    15. Jankovic Ivan & Block Walter, 2019. "Private Property Rights, Government Interventionism and Welfare Economics," Review of Economic Perspectives, Sciendo, vol. 19(4), pages 365-397, December.
    16. Dietrich, Diemo & Jindra, Björn, 2010. "Corporate governance in the multinational enterprise: A financial contracting perspective," International Business Review, Elsevier, vol. 19(5), pages 446-456, October.
    17. Thomas König & Thomas Bräuninger, 1998. "The Inclusiveness of European Decision Rules," Journal of Theoretical Politics, , vol. 10(1), pages 125-142, January.
    18. Roumasset, James A., 1994. "Explaining Diversity In Agricultural Organization: An Agency Perspective," Bulletins 12982, University of Minnesota, Economic Development Center.
    19. repec:bla:jcmkts:v:47:y:2009:i::p:357-384 is not listed on IDEAS
    20. Weiß, Christian, 2010. "The Ownership Concentration of Firms: Three Essays on the Determinants and Effects," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 30247, September.
    21. Thomas König & Bernd Luig, 2017. "The impact of EU decision-making on national parties’ attitudes towards European integration," European Union Politics, , vol. 18(3), pages 362-381, September.
    22. Maloney, Michael T., 2017. "Alchian remembrances," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 561-582.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jcmkts:v:47:y:2009:i:3:p:483-506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-9886 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.