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New Directions in Price Test for Market Definition

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  • Zipitria, Leandro

Abstract

The appropriate definition of the relevant market is the main task in competition cases. But this definition, and its application, has proved difficult in abuse of dominance cases, mainly because of the cellophane fallacy. I offer new interpretations for the cointegration test and its vector error correction representation, in antitrust market definition. Then I apply them to define the beer market in Uruguay as an example.

Suggested Citation

  • Zipitria, Leandro, 2010. "New Directions in Price Test for Market Definition," MPRA Paper 58046, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58046
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    References listed on IDEAS

    as
    1. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919, November.
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    4. Haldrup, Niels, "undated". "Empirical analysis of price data in the delineation of the relevant geographical market in competition analysis," Economics Working Papers 2003-9, Department of Economics and Business Economics, Aarhus University.
    5. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    6. Bénédicte Vidaillet & V. d'Estaintot & P. Abécassis, 2005. "Introduction," Post-Print hal-00287137, HAL.
    7. Mario Forni, 2004. "Using Stationarity Tests in Antitrust Market Definition," American Law and Economics Review, American Law and Economics Association, vol. 6(2), pages 441-464.
    8. Lawrence White, 2005. "Market Definition in Monopoly Cases: A Paradigm is Missing," Working Papers 05-18, New York University, Leonard N. Stern School of Business, Department of Economics.
    9. Niels Haldrup & Peter Møllgaard & Claus Kastberg Nielsen, 2008. "Sequential Versus Simultaneous Market Delineation: The Relevant Antitrust Market For Salmon," Journal of Competition Law and Economics, Oxford University Press, vol. 4(3), pages 893-913.
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    13. Patrick J. Coe & David Krause, 2008. "An Analysis Of Price-Based Tests Of Antitrust Market Delineation," Journal of Competition Law and Economics, Oxford University Press, vol. 4(4), pages 983-1007.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Antitrust; market definition; price test; beer sector.;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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