CALCULATING THE PUBLIC INTEREST IN THE MERGER OF CONTAINER TRANSPORTATION FIRMS: CANADA MARITIME SERVICES AND CAST MARINE HOLDINGS

There are economic models to compare the deadweight loss attributable to an increase in market power brought about by a merger with the concomitant efficiency gains. Yet, because they are devised for final products and envisage markets located in only one country, they require modification to analyze the merger of international container carriers. Indeed, container movement is an intermediate input that covers many countries. This article extends and adapts the models in question to the case of the proposed merger of two container carriers operating in European, Canadian and U.S. markets. This is done through the concept of "transportation consumer surplus". Under certain pricing hypotheses, the merger seems contrary to Canadian public interest.

• Corporate Authors:

  University of British Columbia, Vancouver

  Faculty of Commerce and Business Administration
  Vancouver, British Columbia  Canada  V6T 1Z2
• Authors:
  • Martin, F
• Publication Date: 1996-6

Language

• English

Media Info

• Pagination: p. 207-229
• Serial:
  • LOGISTICS AND TRANSPORTATION REVIEW
  • Volume: 32
  • Issue Number: 2

Subject/Index Terms

• TRT Terms: Consumers surplus; Containerization; International trade; Mergers
• Geographic Terms: Canada; Europe
• Subject Areas: Administration and Management; Economics; Freight Transportation; Highways; Marine Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 00724688
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 30 1996 12:00AM