Friday, July 19, 2013
Posted by D. Daniel Sokol
Malcolm B. Coate, U.S. Federal Trade Commission (FTC) and Shawn W. Ulrick, U.S. Federal Trade Commission (FTC) ask Evaluating Unilateral Effects at the Federal Trade Commission: Do Markets Matter?
ABSTRACT: The 2010 Merger Guidelines highlight unilateral effects analysis as the most prominent theory of concern in differentiated markets. Building on the discussion in the FTC/DOJ Merger Commentaries, the Guidelines tend to marginalize definition of a relevant market. This study evaluates the FTC’s historical record to determine if market-based variables appear to affect policy. Our results, detailed in Tables 3, 4, and 7 highlight the importance of both market-agnostic and market-based explanatory variables. Moreover, competitive effects’ evidence and a focus on price-based competition tends to increase the probability of a unilateral effects finding.