Abstract
Of the many activitiesof the Antitrust Division of theU.S. Department of Justice, we havesummarized some that raise interestingeconomic issues. We describe recentimprovements in the methodology to beused in ``coordinated effects'' analysisof mergers. We also discuss four casesbrought by the DOJ that raise issues ofmarket definition, the influence ofcommon partial ownership of competitors,and the effects of fringe suppliers inconstraining collusion by large firms.
Similar content being viewed by others
References
Baker, Jonathan B. (1993) ‘The Sherman Act Section 1 Dilemmas: Parallel Pricing, the Oligopoly Problem, and Contemporary Economic Theory’, Antitrust Bulletin, 38, 143–219.
Baker, Jonathan B. (2002) ‘Mavericks, Mergers and Exclusion: Proving Coordinated Competitive Effects Under the Antitrust Laws’, New York Law Review, 77, 135–203.
Baker, Jonathan B. (2004) ‘Efficiencies and High Concentration: Heinz Proposes to Acquire Beech-Nut (2001)’, in John E. Kwoka, Jr. and Lawrence J. White, eds., The Antitrust Revolution: Economics, Competition, and Policy, 4th edn, New York: Oxford University Press, 2004, pp. 150–169.
Baker, Wayne E., and Robert R. Faulkner (1993), ‘The Social Organization of Conspiracy: Illegal Networks in the Heavy Electrical Equipment Industry’, American Sociological Review, 58, 837–860.
Bernheim, B. Douglas, and Michael D. Whinston (1990) ‘Multimarket Contact and Collusive Behavior’, Rand Journal of Economics, 21, 1–26.
Dick, Andrew R. (1996) ‘When Are Cartels Stable Contracts?’, Journal of Law and Economics, 39(1), 241–284.
Dick, Andrew R. (2002) ‘Coordinated Interaction: Pre-Merger Constraints and Post-Merger Effects’, in Current Topics in Merger and Antitrust Enforcement, sponsored by the Charles River Associates Conference.
Griffin, James and Weiwen Xiong (1997) ‘The Incentive to Cheat: An Empirical Analysis of OPEC’, Journal of Law and Economics, 40, 289–316.
Hay, George A., and Daniel Kelley (1974), ‘An Empirical Survey of Price Fixing Conspiracies’, Journal of Law and Economics, 17, 13–38.
Hosken, Daniel, Daniel O’Brien, David Scheffinan, and Michael Vita (2002) ‘Demand System Estimation and its Application to Horizontal Merger Analysis’, FTC Bureau of EconomicsWorking Paper #246, April; available at http://www.ftc.gov/be/workpapers/wp246.pdf.
Jacquemin, Alexis, Tsuruhiko Nambu, and Isabelle Dewez (1981) ‘A Dynamic Analysis of Export Cartels: The Japanese Case’, Economic Journal, 91, 685–696.
Katz, Michael L. (2002) ‘Recent Antitrust Enforcement Actions by the U.S. Department of Justice: A Selective Survey of Economic Issues’, Review of Industrial Organization, 21, 373–397.
Kwoka, John E., Jr. (1989) ‘The Private Profitability of Horizontal Mergers with Non-Cournot and Maverick Behavior’, International Journal of Industrial Organization, 7, 403–411.
Kwoka, John E., Jr., and Lawrence J. White (2004), ‘Manifest Destiny? The Union Pacific and Southern Pacific Railroad Mergers (1996)’, in John E. Kwoka, Jr., and Lawrence J. White, eds., The Antitrust Revolution: Economics, Competition and Policy, 4th edn. New York: Oxford University Press, pp. 27–51.
Lamoureux, Christopher George (1985) ‘Three Essays in Normative Portfolio Theory’, Ph.D. Dissertation, Syracuse University, Syracuse, New York.
Levenstein, Margaret C. (1996) ‘Do Price Wars Facilitate Collusion? A Study of the Bromine Cartel Before World War I’, Explorations in Economic History, 33, 1107–1137.
Levenstein, Margaret C. (1998) Accounting for Growth: Information Systems and the Creation of the Large Corporation, Stanford, Calif.: Stanford University Press.
Levenstein, Margaret C., and Valerie Y. Suslow (2002) ‘What Determines Cartel Success?’, Working Paper No.02-001. University of Michigan Business School.
Majure, W. Robert (1996) Verified Statement of W. Robert Majure, Interstate Commerce Commission Docket No.32760, Union Pacific Corp., Union Pacific Railroad Co., and Missouri Pacific Railroad Co.-Control and Merger-Southern Pacific Rail Corp., Southern Pacific Transportation Co, St. Louis Southwestern Railway Co., SPCSL Corp., and the Denver and Rio Grande Western Railroad Co.
O’Brien, Daniel P., and Steven C. Salop (2000) ‘Competitive Effects of Partial Ownership: Financial Interest and Corporate Control’, Antitrust Law Journal, 67, 559–614.
Pautler, Paul A. (2001) ‘Evidence on Mergers and Acquisitions’, FTC Bureau of EconomicsWorking Paper #243, September.
Posner, Richard A. (2001) Antitrust Law, 2nd ed. Chicago: University of Chicago Press.
Rey, Patrick (2002) ‘Collective Dominance and the Telecommunication Industry’, presented at the Conference on the Economics of Antitrust in the Telecommunications Sector, European Commission, Brussels, September 16, 2002.
Rozanski, George and T. Scott Thompson (forthcoming) ‘Uses of Econometrics for Antitrust Analysis at the U.S. Department of Justice’, in J. Harkrider, ed., Econometrics in Antitrust, Antitrust Section of American Bar Association.
Scheffman, David T., and Mary T. Coleman (2002) ‘Current Economic Issues at the FTC’, Review of Industrial Organization, 21, 357–371.
Schmalensee, Richard (1989) ‘Inter-Industry Studies of Structure and Performance’, in Richard Schmalensee and Robert Willig, eds., Handbook of Industrial Organization, Vol. 2, pp. 951–1009.
Stigler, George J. (1964) ‘A Theory of Oligopoly’, The Journal of Political Economy, 72, 39–63.
book/hmg1.html.
Weiss, Leonard W., ed. (1989) Concentration and Price, Cambridge, Mass.: MIT Press.
Werden, Gregory J. (1991) ‘A Review of the Empirical and Experimental Evidence on the Relationship Between Market Structure and Performance’, U.S. Department of Justice, Economic Analysis Group Discussion Paper #91-3.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Sibley, D.S., Heyer, K. Selected Economic Analysis at the Antitrust Division: The Year in Review. Review of Industrial Organization 23, 95–119 (2003). https://doi.org/10.1023/B:REIO.0000006911.97128.d7
Issue Date:
DOI: https://doi.org/10.1023/B:REIO.0000006911.97128.d7