IDEAS home Printed from https://ideas.repec.org/h/spr/conchp/978-3-319-76644-7_10.html
   My bibliography  Save this book chapter

Pricing Benchmark in Market Definition: Theoretical Background and Practical Application

In: Competition Authorities in South Eastern Europe

Author

Listed:
  • Siniša Milošević

    (Serbian Commission for Protection of Competition)

  • Jelena Popović Markopoulos

    (Serbian Commission for Protection of Competition)

  • Jelena Grahovac

    (Serbian Commission for Protection of Competition)

  • Aleksandra Ravić

    (Serbian Commission for Protection of Competition)

Abstract

The definition of the relevant market is one of the most basic underlying concepts of all substantive issues in competition law related to the concentration of enterprises, restrictive agreements and abuse of dominant position. Different methodologies are used for determining the relevant market. What will be applied specifically depends on several factors, the most important including the very nature of a specific product market and data availability. This paper presents the application of methods that are based on the price movement of the products under consideration: correlation, stationarity test (unit root test), cointegration test, and Granger causality test. The aim of the paper is to verify the reliability of these tests in the process of specifying the relevant market. We will demonstrate the practical application of price-based tests on the analysis of monthly time-series data related to the price of three products during the 4-year period.

Suggested Citation

  • Siniša Milošević & Jelena Popović Markopoulos & Jelena Grahovac & Aleksandra Ravić, 2018. "Pricing Benchmark in Market Definition: Theoretical Background and Practical Application," Contributions to Economics, in: Boris Begović & Dušan V. Popović (ed.), Competition Authorities in South Eastern Europe, pages 173-188, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-76644-7_10
    DOI: 10.1007/978-3-319-76644-7_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tabaghdehi, Seyedeh Asieh H. & Hunter, John, 2020. "Long-run price behaviour in the gasoline market - The role of exogeneity," Journal of Business Research, Elsevier, vol. 116(C), pages 620-627.

    More about this item

    Keywords

    Competition; Relevant market; Demand substitution; Price tests; Correlation; Co-integration;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:conchp:978-3-319-76644-7_10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.