Tuesday, December 18, 2007
Assessing the Competitive Effects of a Merger: Empirical Analysis of Price Differences Across Markets and Natural Experiments
Posted by D. Daniel Sokol
In an article by Gregory K. Leonard and Lawrence Wu in NERA's fall issue of Antitrust Insights provides a great overview for non-economists to understand the econometric work behind cases like Whole Foods.
ABSTRACT: The techniques used by the economist expert witnesses in FTC v. Whole Foods Market, Inc.1 illustrate two approaches that exemplify modern empirical merger analysis. One approach focuses on the relationship between price and the number and identities of competitors. The second approach analyzes histor