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Critical Thinking about "Critical Loss" in Antitrust

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Author Info

  • Danger, K.
  • Frech, H.E.III.

Abstract

The critical loss test proposed by Barry Harris and Joseph Simons has become popular in helping define U.S. antitrust markets. The test commonly leads to large, inclusive markets. We show that it is problematic, for several reasons.

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Bibliographic Info

Paper provided by U.S. Department of Justice - Antitrust Division in its series Papers with number 01-4.

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Length: 17 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:usjuat:01-4

Contact details of provider:
Postal: U.S. DEPARTMENT OF JUSTICE; ANTITRUST DIVISION, JUDICIARY CENTER BUILDING 555 4TH ST. N.W. WASHINGTON D.C. 20001 U.S.A..
Email:
Web page: http://www.justice.gov/atr/
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Related research

Keywords: MERGERS ; ANTITRUST LEGISLATION ; MARKET;

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Cited by:
  1. Zimmerman, Paul R. & Carlson, Julie A., 2010. "Critical import supply elasticities and the ‘imports-as-market-discipline’ hypothesis," MPRA Paper 27848, University Library of Munich, Germany.
  2. Frech, Ted, 2002. "Corporate Demography and Empirical Industrial Organization: A Critical Appraisal," University of California at Santa Barbara, Economics Working Paper Series qt451647b2, Department of Economics, UC Santa Barbara.
  3. John Simpson, 2003. "Geographic markets in hospital mergers: a case study," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 10(3), pages 291-303.
  4. Stenborg, Markku, 2004. "Are There Biases in the Market Definition Procedure?," Discussion Papers 903, The Research Institute of the Finnish Economy.

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