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Market Power In The U.S. Economy Today, Jonathan Baker
Market Power In The U.S. Economy Today, Jonathan Baker
Presentations
Market concentration measures the extent to which market shares are concentrated between a small number of firms. It is often taken as a proxy for the intensity of competition. Indeed, in recent years changes in concentration have increasingly been used to argue that the intensity of competition is falling, that the growth of large firms with high market shares is driving up profits, damaging innovation and productivity, and increasing inequality. Some have argued that the competition rules need to be rewritten and a crackdown by overly antitrust agencies is required. The simplicity of this framing has found supporters across the …
The Role Of Market Definition In Unilateral Effects Analysis And In The Litigation Of Unilateral Effects Cases, Jonathan Baker, Kathryn Fenton, Richard Parker, Daniel Wall, Jeffrey Schmidt
The Role Of Market Definition In Unilateral Effects Analysis And In The Litigation Of Unilateral Effects Cases, Jonathan Baker, Kathryn Fenton, Richard Parker, Daniel Wall, Jeffrey Schmidt
Presentations
The Federal Trade Commission is planning to host a public workshop on February 12, 2008 to examine the application of unilateral effects theory to mergers of firms that sell competing, but differentiated products. ”Unilateral effects” as a formal theory of competitive harm was added to the joint FTC/DOJ Horizontal Merger Guidelines in 1992. The theory recognizes that, in some instances, mergers may create or enhance market power by allowing the merged firm to profitably raise prices, without accommodation of other rival market incumbents. While section 2.2 of the Guidelines explains that unilateral competitive effects can arise in a variety of …