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Defining Markets for Ex Ante Regulation using the Hypothetical Monopoly Test

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  • Ian Dobbs

Abstract

The EU is gradually systematizing its approach to ex ante regulation (notably with the publication of the recent regulatory framework for Electronic communications). Market definition is viewed as an essential first step in this, with the 'Hypothetical Monopoly Test' a useful conceptual tool for use in the assessment. This paper examines the use of this test for market definition when there are several differentiated goods or services under consideration. It sets out an analytic framework, discusses the pros and cons of using the test and illustrates its use in a Telecom context.

Suggested Citation

  • Ian Dobbs, 2006. "Defining Markets for Ex Ante Regulation using the Hypothetical Monopoly Test," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(1), pages 83-109.
    • Handle: RePEc:taf:ijecbs:v:13:y:2006:i:1:p:83-109
    DOI: 10.1080/13571510500520028
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    References listed on IDEAS

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    1. Jerry Hausman & Gregory Leonard & J. Douglas Zona, 1994. "Competitive Analysis with Differentiated Products," Annals of Economics and Statistics, GENES, issue 34, pages 143-157.
    2. Margaret E. Slade, 2004. "Market Power and Joint Dominance in U.K. Brewing," Journal of Industrial Economics, Wiley Blackwell, vol. 52(1), pages 133-163, March.
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    Cited by:

    1. Polk, Andreas & Bilotkach, Volodymyr, 2013. "The assessment of market power of hub airports," Transport Policy, Elsevier, vol. 29(C), pages 29-37.
    2. Bender, Christian M. & Kalevi Dieke, Alex & Junk, Petra, 2015. "Zur Marktabgrenzung bei Kurier-, Paket- und Expressdiensten," WIK Discussion Papers 402, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.

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    More about this item

    Keywords

    Market Definition; Hypothetical Monopoly Test; SSNIP Test; JEL Classifications: L41; L42; L5;
    All these keywords.

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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