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Market Definition with Shock Analysis


Øystein Daljord


Norwegian School of Economics (NHH)

Lars Sorgard


Norwegian School of Economics and Business Administration (NHH); Norwegian School of Economics (NHH) - Department of Economics

Øyvind Thomassen


KU Leuven - Center for Economic Studies

December 4, 2007

NHH Dept. of Economics Discussion Paper No. 36/2007

Abstract:     
The SSNIP test for market definition requires information about demand substitution and profitability. If detailed information about demand is not available, observed effects of a shock in the industry may be an alternative source of evidence. In the existing literature, shock analysis has unfortunately not been clearly linked to the SSNIP test. The lack of a rigorous framework may confuse the interpretation of the effects of shocks. We illustrate how a shock can be evaluated within the SSNIP framework with a minimum of data. We apply our criterion to a capacity expansion in the ferry market in the North Sea.

Number of Pages in PDF File: 22

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Date posted: February 11, 2010  

Suggested Citation

Daljord, Øystein and Sorgard, Lars and Thomassen, Øyvind, Market Definition with Shock Analysis (December 4, 2007). NHH Dept. of Economics Discussion Paper No. 36/2007. Available at SSRN: http://ssrn.com/abstract=1550742 or http://dx.doi.org/10.2139/ssrn.1550742

Contact Information

Øystein Daljord
Norwegian School of Economics (NHH) ( email )
Helleveien 30
Bergen, NO-5045
Norway
Lars Sorgard (Contact Author)
Norwegian School of Economics and Business Administration (NHH) ( email )
Helleveien 30
Bergen, NO-5045
Norway
+47 5 595 9723 (Phone)
+47 5 595 9543 (Fax)
Norwegian School of Economics (NHH) - Department of Economics
Helleveien 30
N-5035 Bergen
Norway

Øyvind Thomassen
KU Leuven - Center for Economic Studies ( email )
Naamsestraat 69
Leuven, B-3000
Belgium
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