Implementing the Hypothetical Monopolist SSNIP Test with Multi-Product Firms

Antitrust Source, February 2008

Posted: 30 Jan 2008 Last revised: 26 Jan 2017

Serge Moresi

Charles River Associates (CRA)

Steven C. Salop

Georgetown University Law Center

John Woodbury

Charles River Associates (CRA)

Date Written: January 26, 2008

Abstract

This note describes the implementation of the hypothetical monopolist ssnip test for market definition in the context of merger cases where firms produce multiple differentiated products. The test developed here represents an extension and generalization of the Katz-Shapiro and O'Brien-Wickelgren market definition test for the case of multi-product firms. We present and explain this test with an illustrative example. In the Appendix, we provide a more general and technical description of the test.

Keywords: market definition, SSNIP test, multi-product firms

JEL Classification: L41

Suggested Citation

Moresi, Serge and Salop, Steven C. and Woodbury, John, Implementing the Hypothetical Monopolist SSNIP Test with Multi-Product Firms (January 26, 2008). Antitrust Source, February 2008. Available at SSRN: https://ssrn.com/abstract=1087536 or http://dx.doi.org/10.2139/ssrn.1087536

Serge Moresi (Contact Author)

Charles River Associates (CRA) ( email )

1201 F Street, NW
Suite 700
Washington, DC 20004
United States
(202)662-3847 (Phone)

Steven C. Salop

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9095 (Phone)
202-662-9497 (Fax)

John Woodbury

Charles River Associates (CRA) ( email )

1201 F. St. NW
Ste. 700
Washington, DC 20004
United States

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