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Margin–Concentration Analysis In The Uk Groceries Inquiry

Author

Listed:
  • Jerry A. Hausman
  • David W.G. Parker

Abstract

The UK Competition Commission's recent inquiry into the Groceries sector made the unusual recommendation that organic growth by large incumbents in concentrated areas be prohibited. The key support for this recommendation came from an econometric analysis of the relationship between margins and concentration. We describe the analysis and demonstrate that it suffers from material flaws that cast doubt on the validity of the conclusions drawn from it, and thus on the remedy itself. We identify issues around the nature of debate between investigated parties and the UK authorities on technical issues and make some suggestions for changes to processes.

Suggested Citation

  • Jerry A. Hausman & David W.G. Parker, 2010. "Margin–Concentration Analysis In The Uk Groceries Inquiry," Journal of Competition Law and Economics, Oxford University Press, vol. 6(3), pages 687-704.
    • Handle: RePEc:oup:jcomle:v:6:y:2010:i:3:p:687-704.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhq001
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    Cited by:

    1. Raymundo M. Campos-Vázquez & Eduardo M. Medina-Cortina, 2019. "Pass-through and competition: the impact of soft drink taxes as seen through Mexican supermarkets," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-23, December.

    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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