This paper analyzes the competitive effect of a new product introduction. We break the overall competitive effect into two parts: the effect on the prices of existing products due to increased competition, and the effect of having additional product variety. Using data from both before and after...

Simulation is the use of a structural economic model to predict the effects of a change in economic conditions or policy. Simulation has wide application in competitive analysis, from merger review to the calculation of damages in antitrust and patent infringement litigation. It provides a...

In the United States, beginning with the Matsushita decision in 1986, the Supreme Court has required plaintiffs in predatory pricing cases to meet stringent conditions to prevail on their claims. As a result, predatory pricing cases have become 'rarely tried and even more rarely successful', to...

In 2004, the US Supreme Court denied certiorari in LePage's, Inc. v. 3M. The decision ended a hotly contested litigation, but it fueled the controversy and debate over the competitive effects of bundled rebates and discounts. The Supreme Court's decision followed the recommendations of the US...

The techniques used by the economic expert witnesses in FTC v. Whole Foods Market illustrate the sophistication and complexity of modern empirical merger analysis. In this issue of Antitrust, we explain the intuition behind these techniques and discuss how the results can be used to assess the...

Consumers often benefit from increased competition in differentiated product settings. In previous research Hausman (1997a, 1997b, 1999, 2002) has estimated the increased consumer welfare from the introduction of new brand, e.g. Apple Cinnamon Cheerios, and new products, e.g. mobile telephones....