Generalized Critical Loss for Market Definition

Potomac Law and Economics Working Paper No. 05-01

24 Pages Posted: 1 Jun 2005

Date Written: February 2005

Abstract

This paper generalizes the critical loss concept of Harris and Simons to account for a broader range of possible cost structures. Our focus on understanding the market level equilibrium for relatively homogenous goods makes it clear that the Harris and Simons procedure is appropriate in some situations. In other cases, a generalized critical loss analysis will be more appropriate. In contrast, for relatively differentiated goods, market definition analysis will require firm level modeling.

Keywords:

JEL Classification: K21, L40

Suggested Citation

Coate, Malcolm B. and Williams, Mark David, Generalized Critical Loss for Market Definition (February 2005 ). Potomac Law and Economics Working Paper No. 05-01, Available at SSRN: https://ssrn.com/abstract=669146 or http://dx.doi.org/10.2139/ssrn.669146

Mark David Williams

U.S. Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

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