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Market Definition in Merger Analysis

Forthcoming, as edited, in: Antitrust Economics for Lawyers (LexisNexis), Chapter 1

35 Pages Posted: 27 Jan 2017 Last revised: 9 Feb 2017

Serge Moresi

Charles River Associates (CRA)

Steven C. Salop

Georgetown University Law Center

John Woodbury

Charles River Associates (CRA)

Date Written: February 8, 2017

Abstract

In this short and mainly expository article, we explain the “hypothetical monopolist test” that has become the standard methodology for identifying relevant antitrust markets in merger cases, and discuss two approaches to implementing the test. We then focus on the implementation of the test when firms offer multiple products or services, either inside or outside the candidate market, and discuss the “hypothetical cartel test” introduced in the 2010 U.S. Merger Guidelines.

Keywords: Market definition, Mergers, Merger Guidelines, Hypothetical Monopolist Test, Antitrust

JEL Classification: D42, D43, K21, L41

Suggested Citation

Moresi, Serge and Salop, Steven C. and Woodbury, John, Market Definition in Merger Analysis (February 8, 2017). Forthcoming, as edited, in: Antitrust Economics for Lawyers (LexisNexis), Chapter 1. Available at SSRN: https://ssrn.com/abstract=2906111

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 )

United States

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