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
Date Written: February 8, 2017
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: Suggested Citation