We describe a simple initial indicator of whether a proposed merger between rivals in a differentiated product industry is likely to raise prices through unilateral effects. Our diagnostic calibrates upward pricing pressure (UPP) resulting from the merger, based on the price/cost margins of the...

We describe how the hypothetical monopolist test used to define relevant markets in horizontal merger cases can be implemented using the fundamental economic concepts of opportunity cost and pass-through. Unlike critical loss analysis, our approach analyzes the behavior of a profit-maximizing...

Over two-thirds of FTC and DOJ merger challenges in fiscal 1998 and 1999 were resolved by "negotiated restructuring." Yet, while there is a lot of economics literature on the effects of mergers, I am not aware of much on merger fixes and divestitures. Similarly, while there is a lot of economics...