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 conc omitant efficiency gains. Yet. because they are devised for final prod ucts and envisage markets located In only one country. they require mo dification to analyze the merger of international container carriers. Indeed, container movement is an intermediate input that covers many c ountries. This article extends and adapts the models in question to th e case of the proposed merger of two container carriers operating in E uropean, Canadian and U.S. markets. This is done through the concept o f ''transportation consumer surplus''. Under certain pricing hypothese s. the merger seems contrary to Canadian public interest.