Application of Hypothetical Monopoly Test (SSNIP) to the Brazilian Market of Ready-Made Meals and the Role of the Department of Economic Studies

Dimas Fazio, Simone Cuiabano and Luiz Esteves

A chapter in Competition Law Enforcement in the BRICS and in Developing Countries, 2016, pp 349-361 from Springer

Abstract: Abstract This chapter presents empirical evidence resulted from the application of Hypothetical Monopoly Test—SSNIP to the Brazilian market of readymade meals by the Department of Economic Studies of the Brazilian Competition Authority (CADE). The firm-level data was taken, and the SSNIP test was applied to analyze if the relevant market of the merging companies—JBS/Seara and Massa Leve limited to products of the standard category, while products of the main agent of the market—BRF/Sadia—would be in a different niche or category called premium. It was observed that the hypothesis of a separated market for standard and premium readymade meals is practically null. The proposed merger between JBS/Seara and Massa Leve might create a stronger competitor to diminish the dominance of the market by BRF/Sadia. The operation was approved with no restrictions by CADE in 2014 and has marked a period of increased use of new economic methodologies in CADES's decision. This chapter also describes the history of the establishment of a specific Department of Economics in CADE's new structure.

Keywords: Relevant market; Monopolist test; Competition policy; Department of Economic Studies; F12; F16; J31 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intchp:978-3-319-30948-4_15

Ordering information: This item can be ordered from
http://www.springer.com/9783319309484

DOI: 10.1007/978-3-319-30948-4_15

Access Statistics for this chapter

More chapters in International Law and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().