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.
Duke Scholars
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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
NLM
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.
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