Skip to main content
Log in

Selected Economic Analysis at the Antitrust Division: The Year in Review

  • Published:
Review of Industrial Organization Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

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.

    Google Scholar 

  • Baker, Jonathan B. (2002) ‘Mavericks, Mergers and Exclusion: Proving Coordinated Competitive Effects Under the Antitrust Laws’, New York Law Review, 77, 135–203.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • Bernheim, B. Douglas, and Michael D. Whinston (1990) ‘Multimarket Contact and Collusive Behavior’, Rand Journal of Economics, 21, 1–26.

    Google Scholar 

  • Dick, Andrew R. (1996) ‘When Are Cartels Stable Contracts?’, Journal of Law and Economics, 39(1), 241–284.

    Google Scholar 

  • 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.

    Google Scholar 

  • Hay, George A., and Daniel Kelley (1974), ‘An Empirical Survey of Price Fixing Conspiracies’, Journal of Law and Economics, 17, 13–38.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • Lamoureux, Christopher George (1985) ‘Three Essays in Normative Portfolio Theory’, Ph.D. Dissertation, Syracuse University, Syracuse, New York.

    Google Scholar 

  • 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.

    Google Scholar 

  • Levenstein, Margaret C. (1998) Accounting for Growth: Information Systems and the Creation of the Large Corporation, Stanford, Calif.: Stanford University Press.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • book/hmg1.html.

  • Weiss, Leonard W., ed. (1989) Concentration and Price, Cambridge, Mass.: MIT Press.

    Google Scholar 

  • 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.

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints 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

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:REIO.0000006911.97128.d7

Navigation