Abstract
This paper provides an overview of how economists atthe Federal Trade Commission assess the potentialcompetitive effects of mergers, with a focus on thetypes of quantitative analyses frequently employed.The paper first outlines the general approach employedat the Federal Trade Commission to review mergers.The paper then describes analyses done in theinvestigation of proposed mergers in the cruiseline industry as a specific example. Of particularinterest in this example are the analyses used toassess the potential for coordinated interaction asa result of the merger.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Carlton, Dennis W., and Jeffrey M. Perloff (2000) Modern Industrial Organization, 3rd edn. Reading, MA: Addison-Wesley.
Church, Jeffrey, and Roger Ware (2000) Industrial Organization: A Strategic Approach. Boston: Irwin McGraw-Hill.
Dick, Andrew R. (2002) ‘Coordinated Interaction: Pre-Merger Constraints and Post-Merger Effects’, http://www.crai.com/Agenda/Dick.pdf.
Grimes, Warren S., and John E. Kwoka (2003) ‘A Study in Merger Enforcement Transparency: The FTC's Ocean Cruise Decision and the Presumption Governing High Concentration Mergers’, The Antitrust Source 2(5), 1–14; available at http://www.abanet.org/antitrust/source/may03/metstudy.pdf
Harris, Barry C., and Joseph J. Simons (1989) ‘Focusing Market Definition: How Much Substitution is Necessary?’, Research in Law and Economics, 12, 207–226.
Katz, Michael, and Carl Shapiro (2003) ‘Critical Loss: Let's Tell the Whole Story’, Antitrust, 17, 49–56.
Kreps, David M., and Scheinkman, Jose' A. (1983) Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes', The Bell Journal of Economics, 14, 326–337.
Langenfeld, James, and Wenqing Li (2001) ‘Critical Loss in Evaluating Mergers’, Antitrust Bulletin, 46, 299–337.
O'Brien, Daniel P., and Abraham L. Wickelgren (forthcoming) ‘A Critical Analysis of Critical Loss Analysis’, Antitrust Law Journal.
Scheffman, David (2002) ‘Cruise Investigation: Empirical Economic & Financial Analyses’, available at http://www.ftc.gov/speeches/other/021024mergeenforcement.htm.
Scheffman, David (2003) ‘Sources of Information an Evidence in Merger Investigations: An FTC Economist's View’, available at http://www.ftc.gov/speeches/other/sourcesofinfobrussels03.pdf.
Scheffman, David, and Mary Coleman (2003) ‘Quantitative Analyses of Potential Competitive Effects from a Merger’, George Mason University Law Review (forthcoming) (http://www.ftc.gov/be/quantmergeranalysis.pdf).
Simons, Joseph J. (2002) ‘Merger Enforcement at the FTC’, available at http://www.ftc.gov/speeches/other/021024mergeenforcement.htm.
Werden, Gregory J. (1998) ‘Demand Elasticities in Antitrust Analysis’, Antitrust Law Journal, 66, 363–414.
Woodbury, John R., and William H. Page (2003) ‘Paper Trail: Working Papers and Recent Scholarship’, The Antitrust Source, 2(5), 1–5; available at http://www.abanet.org/antitrust/source/may03/papertrail.pdf
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Coleman, M.T., Meyer, D.W. & Scheffman, D.T. Economic Analyses of Mergers at the FTC: The Cruise Ships Mergers Investigation. Review of Industrial Organization 23, 121–155 (2003). https://doi.org/10.1023/B:REIO.0000006910.18832.0e
Issue Date:
DOI: https://doi.org/10.1023/B:REIO.0000006910.18832.0e