Price Test for Market Definition in the Beer Industry in Uruguay
Revista de Economía, Banco Central del Uruguay, 2010, mayo, vol. 17(1): 149-68
20 Pages Posted: 6 Jun 2012 Last revised: 8 Jun 2012
Date Written: June 6, 2012
The appropriate definition of the relevant market is the main task in competition cases. But this definition, and its application, has proved difficult in abuse of dominance cases, mainly because of the cellophane fallacy. I offer new interpretations for the cointegration test and its vector error correction representation, in antitrust market definition. Then, I apply them to define the beer market in Uruguay as an example.
Note: Downloadable document is in Spanish.
Keywords: Time series models, antitrust policy, beer industry
JEL Classification: C22, C32, L40, L66
Suggested Citation: Suggested Citation