Quantitative Methods for Evaluating the Unilateral Effects of Mergers
43 Pages Posted: 17 Jul 2020 Last revised: 16 Dec 2020
Date Written: December 15, 2020
We describe the quantitative modeling techniques that are used in horizontal merger review for the evaluation of unilateral effects, and discuss how the 2010 Horizontal Merger Guidelines helped legitimize these methods and motivate scholarly research. We cover markets that feature differentiated-products pricing, auctions and negotiations, and homogeneous products, in turn. We also develop connections between quantitative modeling and market concentration screens based on the Herfindahl-Hirschman Index (HHI).
Keywords: Mergers, Antitrust, Unilateral Effects
JEL Classification: L13, L40, L41
Suggested Citation: Suggested Citation