Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, February 11, 2011

Understanding UPP

Posted by D. Daniel Sokol

Roy J. Epstein, BC - Econ and  Daniel L. Rubinfeld, University of California at Berkeley - School of Law, NYU Law School have written on Understanding UPP.

ABSTRACT: Joseph Farrell and Carl Shapiro have proposed a measure of Upward Pricing Pressure (UPP) as offering a presumption of anticompetitive unilteral effects in a merger. We explaini that the underlying framework (which relies on Bertrand competition) is in fact a special case of a more general merger simulation methodology. We discuss the strengths and weaknesses of the framework as a policy tool.

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