The European Commission has cleared the proposed merger between Hapag Lloyd and Compañia Sud Americana de Vapores S.A. (CSAV), which would create the fourth largest container liner shipping company worldwide. The European Commission analyzed the effects of the transaction on 12 trade routes connecting Europe with the Americas, Asia, and the Middle East, and made the clearance conditional on the termination of the consortia to which CSAV currently takes part with MSC on two trade routes (between Northern Europe and the Caribbean and between Northern Europe and South America’s West Coast).
A CRA team led by Damien Neven provided economic advice to Hapag Lloyd during the European Commission proceedings.
Imperfect Price Information, Market Power, and Tax Pass-Through
Pass-through determines how consumers respond to taxes. In a recent working paper, we investigate the impact of imperfect price information on pass-through of...