An Evaluation of the Impact of the 2010 Horizontal Merger Guidelines

24 Pages Posted: 27 Mar 2020

See all articles by Dennis W. Carlton

Dennis W. Carlton

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Mark A. Israel

Compass Lexecon

Date Written: March 2, 2020

Abstract

In comparison to the prior Guidelines, the 2010 Guidelines:

(i) de-emphasized market definition;

(ii) introduced the concept of upward price pressure (UPP) explicitly into the Guidelines;

(iii) maintained focus on potential harm from “coordinated effects” despite what appeared to be its diminishing role in merger analyses (but failed to connect the economics of unilateral behavior to the economics of coordinated behavior);

(iv) discussed entry and the implications of profit margins; and

(v) discussed auctions and bargaining.

In this article we address several questions. How have these more novel changes worked out in practice? How does what happened compare to what we thought would happen at the time the 2010 Guidelines were introduced? And what lessons can be learned from experience to date?

JEL Classification: K, L

Suggested Citation

Carlton, Dennis W. and Israel, Mark A., An Evaluation of the Impact of the 2010 Horizontal Merger Guidelines (March 2, 2020). Available at SSRN: https://ssrn.com/abstract=3547653 or http://dx.doi.org/10.2139/ssrn.3547653

Dennis W. Carlton (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
312-322-0215 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Mark A. Israel

Compass Lexecon ( email )

United States

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