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Economics at the Antitrust Division 2016–2017: Healthcare, Nuclear Waste, and Agriculture

Author

Listed:
  • Ari D. Gerstle

    (U.S. Department of Justice – Antitrust Division)

  • Helen C. Knudsen

    (U.S. Department of Justice – Antitrust Division)

  • June K. Lee

    (U.S. Department of Justice – Antitrust Division)

  • W. Robert Majure

    (U.S. Department of Justice – Antitrust Division)

  • Dean V. Williamson

    (U.S. Department of Justice – Antitrust Division)

Abstract

This year the Antitrust Division of the U.S. Department of Justice litigated an unprecedented number of cases. Two mergers, Anthem with Cigna and Aetna with Humana, threatened to dramatically alter the face of commercial health insurance. The Anthem case raised questions of how to evaluate a claim that competition costs billions annually in potential medical cost savings. The Aetna case raised questions of how commercial insurers compete against the public programs—specifically Medicare. The Division also litigated numerous other civil matters including a proposed merger of nuclear waste disposal facilities. In that case, economists had to explore the scope and bounds of competition within a variety of regulatory regimes. And, in a merger of two new technologies that improve the efficiency of planting seeds, the emerging nature of the market led to interesting variations in the analysis. This overview of the economic issues in these particular cases is intended to provide insights into the challenges of enforcing antitrust law and the way in which economic analysis in particular is used to address those challenges.

Suggested Citation

  • Ari D. Gerstle & Helen C. Knudsen & June K. Lee & W. Robert Majure & Dean V. Williamson, 2017. "Economics at the Antitrust Division 2016–2017: Healthcare, Nuclear Waste, and Agriculture," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 51(4), pages 515-528, December.
    • Handle: RePEc:kap:revind:v:51:y:2017:i:4:d:10.1007_s11151-017-9599-3
    DOI: 10.1007/s11151-017-9599-3
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    References listed on IDEAS

    as
    1. Dunn, Abe, 2010. "The value of coverage in the medicare advantage insurance market," Journal of Health Economics, Elsevier, vol. 29(6), pages 839-855, December.
    2. Hall Anne E, 2011. "Measuring the Return on Government Spending on the Medicare Managed Care Program," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(2), pages 1-43, January.
    3. Leemore Dafny & David Dranove, 2008. "Do report cards tell consumers anything they don't already know? The case of Medicare HMOs," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 790-821, September.
    4. Town, Robert & Liu, Su, 2003. "The Welfare Impact of Medicare HMOs," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 719-736, Winter.
    5. repec:mpr:mprres:3849 is not listed on IDEAS
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    Cited by:

    1. Philip Watson & Jason Winfree, 2022. "Should we use antitrust policies on big agriculture?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1313-1326, September.
    2. Ronald Drennan & Helen C. Knudsen & W. Tom Whalen & Jeffrey M. Wilder, 2020. "The Year in Review: Economics at the Antitrust Division 2019–2020," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(4), pages 815-825, December.

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