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The Year in Review: Economics at the Antitrust Division 2019–2020

Author

Listed:
  • Ronald Drennan

    (U. S. Department of Justice)

  • Helen C. Knudsen

    (U. S. Department of Justice)

  • W. Tom Whalen

    (U. S. Department of Justice)

  • Jeffrey M. Wilder

    (U. S. Department of Justice)

Abstract

Two recent enforcement actions highlight important aspects of the economic analyses that have been performed at the Antitrust Division of the U.S. Department of Justice over this past year: The Novelis-Aleris merger illustrates how the decision-making tools that are used by market participants can reveal market characteristics that are key to merger analysis. The acquisition of Aetna by CVS raised several novel issues. A complex regulatory framework affected optimal bidding behavior among insurers and injected unique considerations into the analysis of a horizontal consolidation. Analysis of vertical aspects of the merger required accounting for variation in the mode of competition across a supply chain.

Suggested Citation

  • Ronald Drennan & Helen C. Knudsen & W. Tom Whalen & Jeffrey M. Wilder, 2020. "The Year in Review: Economics at the Antitrust Division 2019–2020," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(4), pages 815-825, December.
    • Handle: RePEc:kap:revind:v:57:y:2020:i:4:d:10.1007_s11151-020-09793-9
    DOI: 10.1007/s11151-020-09793-9
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    References listed on IDEAS

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    1. Waehrer, Keith & Perry, Martin K, 2003. "The Effects of Mergers in Open-Auction Markets," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 287-304, Summer.
    2. Joseph U. Podwol & Alexander Raskovich, 2021. "Analyzing Vertical Mergers with Auctions Upstream," EAG Discussions Papers 202104, Department of Justice, Antitrust Division.
    3. Miller, Nathan H., 2014. "Modeling the effects of mergers in procurement," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 201-208.
    4. Lance Brannman & Luke M. Froeb, 2000. "Mergers, Cartels, Set-Asides, and Bidding Preferences in Asymmetric Oral Auctions," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 283-290, May.
    5. Ari D. Gerstle & Helen C. Knudsen & June K. Lee & W. Robert Majure & Dean V. Williamson, 2017. "Economics at the Antitrust Division 2016–2017: Healthcare, Nuclear Waste, and Agriculture," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 51(4), pages 515-528, December.
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