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Quantitative Price Tests in Antitrust Market Definition with an Application to the Savory Snacks Markets

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  • Katsoulacos Yannis

    (Department of Economics, Athens University of Economics and Business, 76 Patission Street, Athens 10434, Greece)

  • Konstantakopoulou Ioanna

    (Center of Planning and Economic Research (KEPE), 11 Amerikis str, Athens 10672, Greece)

  • Metsiou Eleni

    (Department of Economics, Athens University of Economics and Business, 76 Patission Street, Athens 10434, Greece)

  • Tsionas Efthymios

    (Department of Economics, Athens University of Economics and Business, 76 Patission Street, Athens 10434, Greece)

Abstract

In this paper, we utilize the complete set of quantitative tests at the disposal of economists for delineating antitrust markets. This includes the Small but Significant Increase in Price (SSNIP) test but also a large number of traditional and newer price co-movement tests. We apply these tests to the savory snacks market using Greek bi-monthly data. This market has been subject to many antitrust investigations because of its market structure and its important implications for consumer welfare. However, no dominant view has yet emerged regarding the appropriate definition of the relevant market. Our results indicate that a wide relevant market definition is appropriate.

Suggested Citation

  • Katsoulacos Yannis & Konstantakopoulou Ioanna & Metsiou Eleni & Tsionas Efthymios, 2014. "Quantitative Price Tests in Antitrust Market Definition with an Application to the Savory Snacks Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 12(1), pages 1-33, January.
    • Handle: RePEc:bpj:bjafio:v:12:y:2014:i:1:p:33:n:6
    DOI: 10.1515/jafio-2013-0022
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    References listed on IDEAS

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    Cited by:

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    2. Fotis, Panagiotis & Polemis, Michael, 2018. "The impact of market deregulation on milk price: A dynamic panel data approach," MPRA Paper 86542, University Library of Munich, Germany.
    3. Ribeiro, Eduardo Pontual & Castor, Kamaiaji, 2019. "Inferring bank-to-bank competition from dynamic time series analysis of price correlations," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 56, pages 62-73.

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    More about this item

    Keywords

    market definition; quantitative price-co-movement tests; savory snacks market;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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