Single-Product Versus Uniform SSNIPs

16 Pages Posted: 20 Feb 2010

See all articles by Øystein Daljord

Øystein Daljord

University of Chicago, Booth School of Business

Lars Sorgard

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

Date Written: February 1, 2010

Abstract

It is common to apply a SSNIP test with a uniform price increase on all products in the candidate market. We show that in situations with asymmetries – for example one product having a limited sale – a uniform SSNIP test can suggest that the relevant market should include more products even though it could be profitable to increase the price of only one product in the candidate market. Our results are illustrated with some findings from a survey in a local grocery market.

Suggested Citation

Daljord, Øystein and Sorgard, Lars, Single-Product Versus Uniform SSNIPs (February 1, 2010). NHH Dept. of Economics Discussion Paper No. 3/2010, Available at SSRN: https://ssrn.com/abstract=1554963 or http://dx.doi.org/10.2139/ssrn.1554963

Øystein Daljord

University of Chicago, Booth School of Business ( email )

Chicago, IL 60637
United States
7738342146 (Phone)

HOME PAGE: http://faculty.chicagobooth.edu/oystein.daljord/index.html

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

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