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Sequential Versus Simultaneous Market Delineation: The Relevant Antitrust Market For Salmon

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  • Niels Haldrup
  • Peter Møllgaard
  • Claus Kastberg Nielsen

Abstract

Delineation of the relevant market constitutes a pivotal part of most antitrust cases. The standard analysis utilizes a sequential approach. First, the product market is delineated; then the geographical market is defined. Demand and supply substitution in both the product dimension and the geographical dimension will normally be stronger than substitution in either dimension. By ignoring this, one might decide first to define products narrowly and then define the geographical extent narrowly, ignoring the possibility of a diagonal substitution. These reflections are important in the empirical delineation of product and geographical markets. Using a unique dataset for prices of Norwegian and Scottish salmon, we propose a methodology that allows for simultaneous market delineation. We then show that market delineation may depend on the choice of method: a simultaneous method reverses the conclusions of a sequential approach as regards the delineation of the market for Atlantic salmon in Europe.

Suggested Citation

  • Niels Haldrup & Peter Møllgaard & Claus Kastberg Nielsen, 2008. "Sequential Versus Simultaneous Market Delineation: The Relevant Antitrust Market For Salmon," Journal of Competition Law and Economics, Oxford University Press, vol. 4(3), pages 893-913.
    • Handle: RePEc:oup:jcomle:v:4:y:2008:i:3:p:893-913.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhn020
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    Cited by:

    1. Zipitria, Leandro, 2010. "New Directions in Price Test for Market Definition," MPRA Paper 58046, University Library of Munich, Germany.
    2. Willem H. Boshoff, 2007. "Stationarity Tests In Geographic Markets: An Application To South African Milk Markets," South African Journal of Economics, Economic Society of South Africa, vol. 75(1), pages 52-65, March.
    3. Vladimír Hajko & Jaroslav Bil, 2013. "The Relevant Markets for Meat Production and Processing in the Czech Republic: Analysis of the Price Movements," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 7(3), pages 178-197, November.

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    More about this item

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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