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Autor principal: Koh, Paul S.
Formato: Preprint
Publicado: 2024
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Acceso en línea:https://arxiv.org/abs/2407.12774
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author Koh, Paul S.
author_facet Koh, Paul S.
contents Market definition holds significant importance in antitrust cases, yet achieving consensus on the correct approach remains elusive. As a result, analysts routinely entertain multiple market definitions to ensure the resilience of their conclusions. I propose a simple framework for conducting organized sensitivity analysis with respect to market definition. I model candidate market definitions as partially ordered and use a Hasse diagram, a directed acyclic graph representing a finite partial order, to summarize the sensitivity analysis. I use the Shapley value and the Shapley-Shubik power index to quantify the average marginal contribution of each firm in driving the conclusion. I illustrate the method's usefulness with an application to the Albertsons/Safeway (2015) merger.
format Preprint
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institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Market Definition: A Sensitivity Analysis
Koh, Paul S.
General Economics
Economics
Market definition holds significant importance in antitrust cases, yet achieving consensus on the correct approach remains elusive. As a result, analysts routinely entertain multiple market definitions to ensure the resilience of their conclusions. I propose a simple framework for conducting organized sensitivity analysis with respect to market definition. I model candidate market definitions as partially ordered and use a Hasse diagram, a directed acyclic graph representing a finite partial order, to summarize the sensitivity analysis. I use the Shapley value and the Shapley-Shubik power index to quantify the average marginal contribution of each firm in driving the conclusion. I illustrate the method's usefulness with an application to the Albertsons/Safeway (2015) merger.
title Market Definition: A Sensitivity Analysis
topic General Economics
Economics
url https://arxiv.org/abs/2407.12774