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On the misuse of regressions of price on the HHI in merger review

Publication ,  Journal Article
Miller, N; Berry, S; Morton, FS; Baker, J; Bresnahan, T; Gaynor, M; Gilbert, R; Hay, G; Jin, G; Kobayashi, B; Lafontaine, F; Levinsohn, J ...
Published in: Journal of Antitrust Enforcement
July 1, 2022

The article explains why regressions of price on HHI should not be used in merger review. Both price and HHI are equilibrium outcomes determined by demand, supply, and the factors that drive them. Thus, a regression of price on the HHI does not recover a causal effect that could inform the likely competitive effects of a merger. Nonetheless, economic theory is consistent with the legal presumption that a merger is likely to have adverse competitive effects if it occurs in a concentrated market and makes that market more concentrated.

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Published In

Journal of Antitrust Enforcement

DOI

EISSN

2050-0696

ISSN

2050-0688

Publication Date

July 1, 2022

Volume

10

Issue

2

Start / End Page

248 / 259

Related Subject Headings

  • 4806 Private law and civil obligations
  • 4803 International and comparative law
  • 4801 Commercial law
  • 1801 Law
 

Citation

APA
Chicago
ICMJE
MLA
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Miller, N., Berry, S., Morton, F. S., Baker, J., Bresnahan, T., Gaynor, M., … Wosinska, M. (2022). On the misuse of regressions of price on the HHI in merger review. Journal of Antitrust Enforcement, 10(2), 248–259. https://doi.org/10.1093/jaenfo/jnac009
Miller, N., S. Berry, F. S. Morton, J. Baker, T. Bresnahan, M. Gaynor, R. Gilbert, et al. “On the misuse of regressions of price on the HHI in merger review.” Journal of Antitrust Enforcement 10, no. 2 (July 1, 2022): 248–59. https://doi.org/10.1093/jaenfo/jnac009.
Miller N, Berry S, Morton FS, Baker J, Bresnahan T, Gaynor M, et al. On the misuse of regressions of price on the HHI in merger review. Journal of Antitrust Enforcement. 2022 Jul 1;10(2):248–59.
Miller, N., et al. “On the misuse of regressions of price on the HHI in merger review.” Journal of Antitrust Enforcement, vol. 10, no. 2, July 2022, pp. 248–59. Scopus, doi:10.1093/jaenfo/jnac009.
Miller N, Berry S, Morton FS, Baker J, Bresnahan T, Gaynor M, Gilbert R, Hay G, Jin G, Kobayashi B, Lafontaine F, Levinsohn J, Marx L, Mayo J, Nevo A, Pakes A, Rose N, Rubinfeld D, Salop S, Schwartz M, Seim K, Shapiro C, Shelanski H, Sibley D, Sweeting A, Wosinska M. On the misuse of regressions of price on the HHI in merger review. Journal of Antitrust Enforcement. 2022 Jul 1;10(2):248–259.
Journal cover image

Published In

Journal of Antitrust Enforcement

DOI

EISSN

2050-0696

ISSN

2050-0688

Publication Date

July 1, 2022

Volume

10

Issue

2

Start / End Page

248 / 259

Related Subject Headings

  • 4806 Private law and civil obligations
  • 4803 International and comparative law
  • 4801 Commercial law
  • 1801 Law