Show simple item record

dc.contributor.authorDutra, Jéssica
dc.contributor.authorSabarwal, Tarun
dc.identifier.citationDutra, J., & Sabarwal, T. (2020). Antitrust analysis with upward pricing pressure and cost efficiencies. PloS one, 15(1), e0227418.
dc.descriptionThis work is licensed under a Creative Commons Attribution 4.0 International License.en_US
dc.description.abstractWe investigate the accuracy of UPP as a tool in antitrust analysis when there are cost efficiencies from a horizontal merger. We include merger-specific cost efficiencies in a tractable manner in the model and extend the standard UPP formulation to account for these efficiencies. The efficacy of the new UPP formulations is analyzed using Monte Carlo simulation of 40,000 mergers (8 scenarios, 5,000 mergers in each scenario). We find that the new UPP formulations yield substantial gains in prediction of post-merger prices, and there are substantial gains in merger screening accuracy as well. Moreover, the new UPP formulations outperform the standard UPP formulation at higher thresholds for all the standard cases in the paper. The results are robust to several additional analyses. The results show that including cost efficiencies in a manner guided by the theoretical model may yield substantial improvements in accuracy of UPP as a tool in antitrust analysis.en_US
dc.publisherPublic Library of Scienceen_US
dc.rights© 2020 Dutra, Sabarwal.en_US
dc.titleAntitrust analysis with upward pricing pressure and cost efficienciesen_US
kusw.kuauthorSabarwal, Tarun
kusw.oaversionScholarly/refereed, publisher versionen_US
kusw.oapolicyThis item meets KU Open Access policy criteria.en_US

Files in this item


This item appears in the following Collection(s)

Show simple item record

© 2020 Dutra, Sabarwal.
Except where otherwise noted, this item's license is described as: © 2020 Dutra, Sabarwal.