Outline the role of the Australian Competition and Consumer Commission and explain why it sometimes does not approve mergers between firms. Your answer should include a comparison between the market outcomes of perfect competition and monopoly, and a relevant economic model. Also include an example of a merger that was not approved, and use economics to explain why.
Your introduction should include a thesis statement and a brief summary of how you are addressing the question.
Briefly outline the role of the ACCC.
Paragraphs 2 and 3
Efficiency in a competitive market versus a monopoly.
Compare the market outcomes of perfect competition and monopoly (long run). Use at least two graphs (models) to demonstrate the different market outcomes and in the comparison emphasise how competition leads to benefits such as the achievement of economic efficiency (3 types – allocative, productive/technical and dynamic). Monopolies or more specifically natural monopolies, can achieve productive/technical efficiency.
Mergers, Mergers and s.50 of the Competition and Consumer Act 2010 and a brief outline of some of the key ACCC merger guidelines.
Definition of mergers (there are different types of mergers).
Discuss ACCC’s merger analysis under s.50 of the Competition and Consumer Act 2010 and outline some of the key merger guidelines (competition test).
Using an example explain why a particular merger was not approved.
Using a merger example discuss why the merger was not approved and relate the analysis to the economic concepts and ideas discussed in paragraphs 2 and 3.
Why a particular merger was approved or the benefits of mergers.
Discuss why some mergers are approved – the benefits associated with mergers – economies of scale etc..
Regulation Issues: The difficulties the ACCC faces when assessing whether a proposed merger would substantially lessen competition.
ACCC and difficulties in assessing the effects of mergers – definition of market, creeping mergers (Harper Review Part 4, Competition Laws , Mergers (18 pages 312 -332)
No new ideas just a restatement of thesis and summary of the key, salient points
Citation and Referencing Style : Chicago
In Text Citation and Referencing List
General idea, paraphrasing, direct quotes, graphs, tables, all statistics and data etc must be cited in the essay and cited in your reference list at the end of the essay.
To check originality and text matching use Urkund.
Use relevant graphs and diagrams to explain links and causation between variables and economic theory. In addition, you can use diagrams to illustrate the effects of economic policies where appropriate.