A Distance-based Algorithm for Defining Antitrust Markets

Charles Taragin and Marco Taylhardat ()
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Charles Taragin: https://www.federalreserve.gov/econres/charles-s-taragin.htm

No 2025-051, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We propose a simple algorithm for defining merger-specific geographic antitrust markets based on merging firm proximity. Applying it to over a thousand hypothetical bank mergers, we compare concentration measures in our markets to those defined by the Federal Reserve, which are not merger-specific, finding broad agreement but also offering potential improvements upon current definitions.

Keywords: Market definition; Bank mergers; Computational methods (search for similar items in EconPapers)
JEL-codes: C63 G34 L40 (search for similar items in EconPapers)
Pages: 10 p.
Date: 2025-07-08
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2025-51

DOI: 10.17016/FEDS.2025.051

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