Analyzing Mergers Using Capacity Closures

In this paper I describe a method for analyzing mergers in industries in which it is more cost effective to close capacity than to idle it. The method can be used to define markets, to assess the likelihood of competitive effects and to evaluate divestitures. I also discuss the method’s data requirements and how it can be modified to deal with the types of issues that often arise during an antitrust investigation.

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Year of publication:	2008-08
Authors:	Hill, Nicholas
Institutions:	Antitrust Division, Department of Justice
Subject:	Merger \| Capacity \| Competition \| Antitrust \| Critical Loss

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Extent:	application/pdf
Series:	EAG Discussions Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 200808 10 pages
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L40 - Antitrust Policy. General ; K21 - Antitrust Law
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008542285