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
Date Written: July 27, 2002
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: Suggested Citation