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
Authors:	Hill, Nicholas
Publisher:	Washington, DC : U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG)
Subject:	Merger \| Capacity \| Competition \| Antitrust \| Critical Loss

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Series:	Economic Analysis Group Discussion Paper ; EAG 08-8
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	737233052 [GVK] hdl:10419/202374 [Handle] RePEc:doj:eagpap:200808 [RePEc]
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L40 - Antitrust Policy. General ; K21 - Antitrust Law
Source:	EconStor

Persistent link: https://www.econbiz.de/10012056308