Understanding UPP

10 Pages Posted: 4 Jan 2011

See all articles by Roy J. Epstein

Roy J. Epstein

Independent

Daniel L. Rubinfeld

University of California at Berkeley - School of Law; National Bureau of Economic Research (NBER); NYU Law School

Date Written: January 2, 2011

Abstract

Joseph Farrell and Carl Shapiro have proposed a measure of Upward Pricing Pressure (UPP) as offering a presumption of anticompetitive unilteral effects in a merger. We explain that the underlying framework (which relies on Bertrand competition) is in fact a special case of a more general merger simulation methodology. We discuss the strengths and weaknesses of the framework as a policy tool.

Keywords: merger analysis, unilateral effects

JEL Classification: L40, L10

Suggested Citation

Epstein, Roy J. and Rubinfeld, Daniel L., Understanding UPP (January 2, 2011). Available at SSRN: https://ssrn.com/abstract=1734012 or http://dx.doi.org/10.2139/ssrn.1734012

Roy J. Epstein (Contact Author)

Independent ( email )

34 Cushing Ave.
02478

Daniel L. Rubinfeld

University of California at Berkeley - School of Law ( email )

215 Boalt Hall
Berkeley, CA 94720-7200
United States
(510) 642-1959 (Phone)
(510) 642-3767 (Fax)

HOME PAGE: http://www.law.berkeley.edu/faculty/rubinfeldd

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

NYU Law School ( email )

44 West Fourth Street, Suite 9-53
New York, NY 10012-1126
United States
(212) 992 8834 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
289
Abstract Views
1,881
Rank
192,249
PlumX Metrics