Recapture Ratios in Merger Analysis

Economics Letters, Vol. 170, No. 1, pp. 136-138, 2018

11 Pages Posted: 31 Oct 2017 Last revised: 2 Aug 2018

Serge Moresi

Charles River Associates (CRA)

Hans Zenger

European Union - Directorate General for Competition

Date Written: June 11, 2018

Abstract

Most quantitative tools for assessing competitive effects of mergers rely heavily on recapture ratios (also known as aggregate diversion ratios). Recapture ratios measure the proportion of customers switching away from a product that is captured by other products within the market rather than outside the market. We propose a simple approach for approximating recapture ratios which can be usefully applied in merger and competition cases.

Keywords: Diversion ratios, competitive effects of mergers

JEL Classification: L4

Suggested Citation

Moresi, Serge and Zenger, Hans, Recapture Ratios in Merger Analysis (June 11, 2018). Economics Letters, Vol. 170, No. 1, pp. 136-138, 2018. Available at SSRN: https://ssrn.com/abstract=3061622 or http://dx.doi.org/10.2139/ssrn.3061622

Serge Moresi (Contact Author)

Charles River Associates (CRA) ( email )

1201 F Street, NW
Suite 700
Washington, DC 20004
United States
(202)662-3847 (Phone)

Hans Zenger

European Union - Directorate General for Competition ( email )

Place Madou, Madouplein 1
Saint-Josse-ten-Noode/Sint-Joost-ten-Noode
Brussels, B-1049
Belgium

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