Demand System Estimation And Its Application To Horizontal Merger Analysis
- Topics:
- Mergers
- Tags:
- Finance,
- FTC,
- Investment,
- Merger,
- Mergers & Acquisitions,
- Practitioner
- Source:
- Federal Trade Commission
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Overview: The past decade has witnessed remarkable developments in the quantitative analysis of horizontal mergers. Increases in computing power and the quantity and quality of data available have substantially reduced the costs of estimating demand systems using econometric methods. Good estimates of retail demand elasticities can make an important contribution to assessing the potential effects of a manufacturer merger on consumer prices. While estimates of demand relationships can make substantial contributions to merger analysis, it is much like every other area of empirical economics, in that practitioners invariably are forced to confront and resolve a series of difficult econometric and conceptual issues. The purpose of this paper is to identify several of these issues which researchers and practitioners should address, as a general matter, and in specific applications in which these issues are pertinent, with the ultimate goal of improving the quality of antitrust analysis.
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Format: PDF | Size: 361KB | Date: Apr 2002 | Pages: 36
