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Market Delineation Algorithms Based on the Hypothetical Monopolist Paradigm
Gregory J. Werden U.S. Department of Justice - Antitrust Division July 27, 2002 US DOJ Antitrust Division Economic Analysis Group Discussion Paper No. 02-8 Abstract: The U.S. Horizontal Merger Guidelines and guidelines issued by enforcement agencies around the world employ the hypothetical monopolist paradigm to delineate relevant markets, but they provide only an imprecise and incomplete algorithm for implementing that paradigm. This paper fills the gap by providing a mathematically precise algorithm for market delineation in merger cases based on the hypothetical monopolist paradigm.
Keywords: Antitrust, Market Delineation, Mergers JEL Classifications: L41 Working Paper SeriesDate posted: October 15, 2002 ; Last revised: October 15, 2002Suggested CitationContact Information
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