Understanding UPP

10 Pages Posted: 4 Jan 2011

See all articles by Roy J. Epstein

Roy J. Epstein


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


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)

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Daniel L. Rubinfeld

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