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Equivalent tests for mergers in homogeneous goods industries

Author

Listed:
  • Oscar De la garza

    (Universidad Autonoma de Nuevo Leon)

  • Daniel Flores

    (Universidad Autonoma de Nuevo Leon)

Abstract

We show the equivalence of two tests that can be used to determine if a merger is not likely to cause a price increase in homogeneous goods industries. In addition, we discuss the advantages of one test over the other

Suggested Citation

  • Oscar De la garza & Daniel Flores, 2015. "Equivalent tests for mergers in homogeneous goods industries," Economics Bulletin, AccessEcon, vol. 35(2), pages 1379-1382.
    • Handle: RePEc:ebl:ecbull:eb-15-00266
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I2-P138.pdf
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    References listed on IDEAS

    as
    1. Farrell, Joseph & Shapiro, Carl, 1990. "Horizontal Mergers: An Equilibrium Analysis," American Economic Review, American Economic Association, vol. 80(1), pages 107-126, March.
    2. Froeb, Luke M. & Werden, Gregory J., 1998. "A robust test for consumer welfare enhancing mergers among sellers of a homogeneous product," Economics Letters, Elsevier, vol. 58(3), pages 367-369, March.
    3. Marie Goppelsroeder & Maarten Pieter Schinkel & Jan Tuinstra, 2008. "Quantifying The Scope For Efficiency Defense In Merger Control: The Werden‐Froeb‐Index," Journal of Industrial Economics, Wiley Blackwell, vol. 56(4), pages 778-808, December.
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    More about this item

    Keywords

    Mergers; Tests; Antitrust;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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