合并执行指南审查：对合并审查算法的评论.docxVIP

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WHYALGORITHMSMATTERFORMERGERREVIEW

SUMMARY

Basedontake-awaysfromtherecentacademicliterature,Idiscusswaysinwhichtheuseofalgorithmsbyparticipantsinamarketshouldinfluencethemergerreviewprocess.First,Ishowexampleswhereamergerreviewprocessthatfailstoconsiderthepresenceofalgorithmicpricingcanresultinanticompetitivemergersappearingprocompetitiveandprocompetitivemergersappearinganticompetitive.ThenIdiscusshowthepresenceofalgorithmscanimpactmarketdefinition.Finally,Idiscusshowalgorithmscanimpactcoordinatedeffectsfrommergers.Ithenproposeasimplechecklisttohelppractitionersreviewsomeofthecommonissuesthatmightaffecttheanalysisofmergersinthepresenceofalgorithms.

INTRODUCTION

Ignoringthepresenceofalgorithmicpricingandotheralgorithmscanleadtoincorrectdecisionswhenreviewingmergers.Therefore,theuseofalgorithmsinpricingandotherdecisionsshouldbeaprimaryconcernwhenreviewingmergersasalgorithmscanmakemarketsmoreefficientorlesscompetitive.2

Mergersthatwouldotherwisebeprocompetitivecanbecomeanticompetitivebecauseoftheuseofalgorithmsinpricing.Conversely,mergersthatwouldbeanticompetitivewithoutthepresenceofalgorithmsinthemarketcanbeprocompetitivewhenconsideringtheinfluenceofalgorithms.3

Theuseofalgorithmscanchangemarketdefinition.Forinstance,algorithmscanbettertargetsomeconsumersthroughpersonalizationofpricingwhichcanleadtosomesegmentsofthemarketsonlybeingaddressedbyalimitednumberoffirmsthatarepresentinamarket.Algorithmscanalsohelpcreatenichemarketsthatwouldnotbeserviceablewithouttheuseofalgorithms.

1Dr.AlexArsenault,Ph.D.(aarsenault@),isaSeniorAssociatewithCharlesRiverAssociatesinToronto,Canada.Theviewsexpressedhereinaresolelyhisviewsandopinionsatthetimeofwritinganddonotreflect