Defining What the Relevant Market Is: A New Method for Consumer Research and Antitrust

51 Pages Posted: 21 Feb 2024

See all articles by Markus Dertwinkel-Kalt

Markus Dertwinkel-Kalt

University of Münster; Max Planck Institute for Research on Collective Goods

Vincent Eulenberg

University of Münster

Christian Wey

University of Düsseldorf - Düsseldorf Institute for Competition Economics (DICE)

Date Written: January 1, 2024

Abstract

Market delineation is an important topic of Antitrust, yet it relies on imperfect methods like the SSNIP test. We propose a novel survey-based approach that is cheap and straightforward to implement, and universally applicable across all product categories. This method is particularly suitable for digital goods priced at zero, where traditional market delineation techniques, such as the SSNIP test, fail. We have validated our method using an online survey, which also yields new insights for the delineation of markets that have been in the recent focus of Antitrust authorities. Our method is also valuable for marketing purposes as it offers a new way to study consumers' consumption patterns.

Keywords: Antitrust, Relevant Market, Correlation Preferences

JEL Classification: K21, L41, C80

Suggested Citation

Dertwinkel-Kalt, Markus and Eulenberg, Vincent and Wey, Christian, Defining What the Relevant Market Is: A New Method for Consumer Research and Antitrust (January 1, 2024). Available at SSRN: https://ssrn.com/abstract=4710988 or http://dx.doi.org/10.2139/ssrn.4710988

Markus Dertwinkel-Kalt (Contact Author)

University of Münster ( email )

Universitätsstraße 14-16
Münster, 48143
Germany

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

Vincent Eulenberg

University of Münster ( email )

Christian Wey

University of Düsseldorf - Düsseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany
+49-211-81-15009 (Phone)
+49-211-81-15499 (Fax)

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