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UPP Analysis in Five Recent Merger Cases

Author

Listed:
  • Baltzopoulos, Apostolos

    (Konkurrensverket)

  • Kim, Jaewon

    (Konkurrensverket)

  • Mandorff, Martin

    (Konkurrensverket)

Abstract

A recent development in merger review has been the shift from an approach committed to market definitions, market shares and concentration index appraisals to more effect-based analyses. In this paper we Review and summarize the underpinnings of what has become a popular tool in identifying potentially problematic mergers, known as the Upwards Pricing Pressure (UPP) methodology and discuss how it has been applied in five recent cases reviewed by Konkurrensverket (the Swedish Competition Authority). Thepaper attempts to provide an all-inone guide for practitioners who are interested in getting a full grasp of how the UPP framework has been developed and how to apply it.

Suggested Citation

  • Baltzopoulos, Apostolos & Kim, Jaewon & Mandorff, Martin, 2015. "UPP Analysis in Five Recent Merger Cases," Konkurrensverket Working Paper Series in Law and Economics 2015:3, Konkurrensverket (Swedish Competition Authority).
    • Handle: RePEc:hhs:kkveco:2015_003
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    File URL: http://www.konkurrensverket.se/globalassets/publikationer/workingpaper/working_paper_2015-3.pdf
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    References listed on IDEAS

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    Cited by:

    1. Tommaso Valletti & Hans Zenger, 2021. "Mergers with Differentiated Products: Where Do We Stand?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(1), pages 179-212, February.
    2. Cosnita-Langlais, Andreea & Johansen, Bjørn Olav & Sørgard, Lars, 2021. "Upward pricing pressure in two-sided markets: Incorporating rebalancing effects," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    3. Michael Trost, 2021. "Is the Whole Greater than the Sum of Its Parts? Pricing Pressure Indices for Mergers of Vertically Integrated Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(2), pages 235-262, March.
    4. Russell Pittman, 2018. "Three Economist’s Tools for Antitrust Analysis: A Non-technical Introduction," Contributions to Economics, in: Boris Begović & Dušan V. Popović (ed.), Competition Authorities in South Eastern Europe, pages 155-172, Springer.

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    More about this item

    Keywords

    unilateral effects; merger Review; diversion ratio; GUPPI; UPP; IPR; CMCR;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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