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

Author:

Miller Nathan1,Berry Steven2,Scott Morton Fiona2,Baker Jonathan3,Bresnahan Timothy4,Gaynor Martin5,Gilbert Richard6,Hay George7,Jin Ginger8,Kobayashi Bruce9,Lafontaine Francine10,Levinsohn James2,Marx Leslie11,Mayo John1,Nevo Aviv12,Pakes Ariel13,Rose Nancy14,Rubinfeld Daniel15,Salop Steven1,Schwartz Marius1,Seim Katja2,Shapiro Carl6,Shelanski Howard1,Sibley David16,Sweeting Andrew8,Wosinska Marta17

Affiliation:

1. Georgetown University Nathan Miller, John Mayo, Steven Salop, Marius Schwartz and Howard Shelanski, Professor,

2. Yale University Steven Berry, Fiona Scott Morton, James Levinsohn and Katja Seim, Professor,

3. American University Jonathan Baker, Professor,

4. Stanford University Timothy Bresnahan, Professor,

5. Carnegie-Mellon University Martin Gaynor, Professor,

6. University of California Richard Gilbert and Carl Shapiro, Professor, , Berkeley

7. Cornell University George Hay, Professor,

8. University of Maryland Ginger Jin and Andrew Sweeting, Professor,

9. George Mason University Bruce Kobayashi, Professor,

10. University of Michigan Francine Lafontaine, Professor,

11. Duke University Leslie Marx, Professor,

12. University of Pennsylvania Aviv Nevo, Professor,

13. Harvard University Ariel Pakes, Professor,

14. Massachusetts Institute of Technology Nancy Rose, Professor,

15. New York University Daniel Rubinfeld, Professor,

16. University of Texas David Sibley, Professor, , Austin

17. USC-Brookings Schaeffer Initiative for Health Policy, Brookings Institute Marta Wosinska, Visiting Fellow at the

Abstract

Abstract 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.

Publisher

Oxford University Press (OUP)

Subject

Law

Cited by 7 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. The 2023 Merger Guidelines: Law, Fact, and Method;Review of Industrial Organization;2024-05-18

2. A Competition Perspective on Physician Non-compete Agreements;INQUIRY: The Journal of Health Care Organization, Provision, and Financing;2024-01

3. The Potential and Limitations of Competition to Achieve Sustainability;SSRN Electronic Journal;2024

4. Retail Concentration and Wages;SSRN Electronic Journal;2024

5. Some facts about concentrated labor markets in the United States;Industrial Relations: A Journal of Economy and Society;2023-07-20

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3