Posted by D. Daniel Sokol
Louis Kaplow, Harvard Law School; National Bureau of Economic Research (NBER) discusses Market Definition
ABSTRACT: Market definition has long held a central place in competition law. This entry surveys recent analytical work that has called the market definition paradigm into question on a number of fronts: whether the process is feasible, whether market share threshold tests are coherent, whether the hypothetical monopolist test in merger guidelines is counterproductive, and whether and when the frequent focus on cross-elasticities is useful.
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