Illustrative Price Rises from Mergers in Differentiated Products Markets

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David Parker, Apr 30, 2009

The approach taken by U.K. competition authorities to analyzing the extent of
merger concerns in differentiated products markets has evolved over time. An
approach which has been applied in an increasing number of cases, especially by
the Office of Fair Trading (“OFT”), involves calculating illustrative price rises from a
combination of the “diversion ratio”—the proportion of sales lost by one ...