A theoretical approach to market definition analysis
This work performs a theoretical approach to market definition analysis. The conditions a test must satisfy are selected in order to define the relevant market according to the jurisdictions of the United States and the European Union as most tests proposed by economists tend not to satisfy all the required conditions. I use two models of horizontal product differentiation to illustrate the nature of the tests that can be used under each jurisdiction. The main conclusion of the paper is that the empirical tests for market definition which are valid in the current legislations in the United States and the European Union must be performed using a different approach which may yield different relevant markets. Copyright Springer Science+Business Media, LLC 2012
Volume (Year): 34 (2012)
Issue (Month): 3 (December)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/journal/10657|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Forni, Mario, 2002.
"Using Stationarity Tests in Antitrust Market Definition,"
CEPR Discussion Papers
3236, C.E.P.R. Discussion Papers.
- Mario Forni, 2004. "Using Stationarity Tests in Antitrust Market Definition," American Law and Economics Review, Oxford University Press, vol. 6(2), pages 441-464.
- Scheffman, David T & Spiller, Pablo T, 1987. "Geographic Market Definition under the U.S. Department of Justice Merger Guidelines," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 123-47, April.
- Klein, Chris & Rifkin, Edward J. & Uri, Noel D., 1985. "A note on defining geographic markets," Regional Science and Urban Economics, Elsevier, vol. 15(1), pages 109-119, February.
- Javier Elizalde, 2013.
"Market definition with differentiated products: a spatial competition application,"
European Journal of Law and Economics,
Springer, vol. 36(3), pages 471-521, December.
- Javier Elizalde, 2011. "Market Definition with Differentiated Products: A Spatial Competition Application," Faculty Working Papers 07/11, School of Economics and Business Administration, University of Navarra.
- d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979.
"On Hotelling's "Stability in Competition","
Econometric Society, vol. 47(5), pages 1145-50, September.
- Hogarty, Thomas F & Elzinga, Kenneth G, 1972. "The Demand for Beer," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 195-98, May.
- Baker, Jonathan B. & Bresnahan, Timothy F., 1988. "Estimating the residual demand curve facing a single firm," International Journal of Industrial Organization, Elsevier, vol. 6(3), pages 283-300.
- Slade, Margaret E, 1986. "Exogeneity Tests of Market Boundaries Applied to Petroleum Products," Journal of Industrial Economics, Wiley Blackwell, vol. 34(3), pages 291-303, March.
- Behringer, Stefan, 2007. "Spacial Predation in the UK Newspaper Industry," MPRA Paper 3242, University Library of Munich, Germany, revised 15 Apr 2007.
- Uri, Noel D & Rifkin, Edward J, 1985. "Geographic Markets, Causality and Railroad Deregulation," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 422-28, August.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Economides, Nicholas, 1989. "Symmetric equilibrium existence and optimality in differentiated product markets," Journal of Economic Theory, Elsevier, vol. 47(1), pages 178-194, February.
- Steffen Brenner, 2005. "Hotelling Games with Three, Four, and More Players," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 851-864.
- Neven, Damien, 1985. "Two Stage (Perfect) Equilibrium in Hotelling's Model," Journal of Industrial Economics, Wiley Blackwell, vol. 33(3), pages 317-25, March.
When requesting a correction, please mention this item's handle: RePEc:kap:ejlwec:v:34:y:2012:i:3:p:449-475. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.