Advanced economic instruments like simulation models are enjoying an increased popularity in practical antitrust. There is hope that they being quantitative predictive economic evidence can substitute for qualitative structural analysis and lead to unambiguous results. This paper demonstrates...

Advances in competition economics as well as in computational and empirical methods have offered the scope for the employment of merger simulation models in merger control procedures during the past almost 15 years. Merger simulation is, nevertheless, still a very young and innovative instrument...

Advances in competition economics as well as in computational and empirical methods have offered the scope for the employment of merger simulation models in merger control procedures during the past almost 15 years. Merger simulation is, nevertheless, still a very young and innovative instrument...

The use of conduct remedies in merger enforcement raises a number of serious issues, and it may be difficult or impossible to use these remedies as the basis for a competitively desirable relief. Thus, the antitrust authorities should make at most only a limited use of these remedies and should...

Comcast and Time Warner Cable say their proposed $45 billion merger would not raise prices -- and instead lead to real benefits -- for cable and broadband customers across the country. But, as we discuss, the deal raises serious concerns of a creeping monopolist and the ability of a powerful...

Efficiency defence and merger remedies are key components in most merger control regimes. Although in many jurisdictions both the provision of efficiency-related evidence and remedy offers are at the merging firms' discretion, most previous works have only analysed them separately. This paper is...

This article addresses the application of the economic literature on merger simulation to the practical context of antitrust enforcement. It highlights the value of simple simulations as a basis for creating screens and presumptions – particularly the gross upward pricing pressure index for...

This paper studies Tesoro's 2013 acquisition of British Petroleum's Los Angeles refinery. We present a merger simulation model tailored to the gasoline market, which includes Cournot firms and a price-taking fringe. This hybrid model generates margins that are more plausible than those generated...

The analysis of unilateral effects in horizontal mergers — especially on markets for differentiated goods — can take into consideration the extent to which the merging firms are close competitors. The elimination of a close competitor can result in an upward pricing pressure (UPP) on the...

Merger analysis is an exercise in prediction. This paper analyzes the accuracy of two leading methods of predicting merger outcomes – stock market event studies, and a market-structure/Merger Guidelines approach – as well as the accuracy of antitrust agencies' decisions whether or not to...