Prospects and Limits of Merger Simulations as a Computational Antitrust Tool

Computational antitrust is gaining high attention from competition authorities worldwide. In this paper, we examine the promises and downsides of merger simulations as a tool of computational antitrust. In doing this, we first provide an overview of the working mechanisms of the merger simulation tool and then evaluate its implementation in competition policy, including the question of whether more sophisticated technologies would change analysis. We consider perspectives from industrial economics, institutional economics, and political economics. The results of the analysis show that institutions matter to reap considerable prospects of merger simulations as a computational antitrust tool.