A Note on Upward Pricing Pressure : The Possibility of False Positives

Farrell and Shapiro proposed a simple test of the possible upward pricing pressure (UPP) following a merger. They showed that the test may give false negatives, that is, indicate that a merger may not give an UPP, while a more comprehensive test would indicate the opposite. We show that their test applied to a case with asymmetric firms may give false positives

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Year of publication:	2012
Authors:	Mathiesen, Lars
Other Persons:	Nilsen, Øivind Anti (contributor) ; Sørgard, Lars (contributor)
Publisher:	[2012]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Fusionskontrolle \| Merger control \| Preismanagement \| Pricing strategy

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