Analyzing Mergers Using Capacity Closures

Nicholas Hill
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Nicholas Hill: Economic Analysis Group, Antitrust Division, Department of Justice

No 200808, EAG Discussions Papers from Department of Justice, Antitrust Division

Abstract: In this paper I describe a method for analyzing mergers in industries in which it is more cost effective to close capacity than to idle it. The method can be used to define markets, to assess the likelihood of competitive effects and to evaluate divestitures. I also discuss the method’s data requirements and how it can be modified to deal with the types of issues that often arise during an antitrust investigation.

Keywords: Merger; Capacity; Competition; Antitrust; Critical Loss (search for similar items in EconPapers)
JEL-codes: K21 L11 L40 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2008-08
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:doj:eagpap:200808

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