A NOTE ON UPWARD PRICING PRESSURE: THE POSSIBILITY OF FALSE POSITIVES
Øivind Nilsen () and
Lars Sørgard ()
Journal of Competition Law and Economics, 2012, vol. 8, issue 4, 881-887
Joseph Farrell and Carl Shapiro proposed a simple test of the possible upward pricing pressure (UPP) following a merger. They showed that the test may give false negatives—that is, indicate that a merger may not give an UPP, while a more comprehensive test would indicate the opposite. We show that their test applied to a case with asymmetric firms may give false positives.
JEL-codes: K21 L41 (search for similar items in EconPapers)
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Working Paper: A Note on Upward Pricing Pressure:The possibility of false positives (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:jcomle:v:8:y:2012:i:4:p:881-887.
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