Market Delineation Algorithms Based on the Hypothetical Monopolist Paradigm

US DOJ Antitrust Division Economic Analysis Group Discussion Paper No. 02-8

25 Pages Posted: 15 Oct 2002

See all articles by Gregory J. Werden

Gregory J. Werden

Independent; George Mason University - Mercatus Center

Date Written: July 27, 2002

Abstract

The U.S. Horizontal Merger Guidelines and guidelines issued by enforcement agencies around the world employ the hypothetical monopolist paradigm to delineate relevant markets, but they provide only an imprecise and incomplete algorithm for implementing that paradigm. This paper fills the gap by providing a mathematically precise algorithm for market delineation in merger cases based on the hypothetical monopolist paradigm.

Keywords: Antitrust, Market Delineation, Mergers

JEL Classification: L41

Suggested Citation

Werden, Gregory J., Market Delineation Algorithms Based on the Hypothetical Monopolist Paradigm (July 27, 2002). US DOJ Antitrust Division Economic Analysis Group Discussion Paper No. 02-8, Available at SSRN: https://ssrn.com/abstract=327282 or http://dx.doi.org/10.2139/ssrn.327282

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