Implementing Relevant Market Tests in Antitrust Policy: Application to Computer Servers
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Marc Ivaldi
The paper defines, implements and compares two empirical tests of relevant markets. While the SSNIP test compares an initial industry equilibrium to an out-of-equilibrium situation, the 1984 US Merger Guidelines test compares the same initial equilibrium to a second equilibrium outcome. We define these concepts formally and apply them to the computer server industry by estimating a model on a large dataset. We find several smaller relevant markets in the low-end segment of servers. In addition, we find that the results might be quantitatively significantly different between the two approaches as the SSNIP test changes prices uniformly and does not take into account the multi-product pricing strategies of the firms.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Article
- In the Beginning Was the Word. Now is the Copyright
- The $700 Billion Bailout: A Public-Choice Interpretation
- Corporate Liability and Internal Procedures
- The Social Cost of Blackmail
- The Problem of Social Cost: What Problem? A Critique of the Reasoning of A.C. Pigou and R.H. Coase
- Should Courts Always Enforce What Contracting Parties Write?
- Implementing Relevant Market Tests in Antitrust Policy: Application to Computer Servers
- English Rule and Frivolous Suits: Conditional versus Hourly Fees
- Compliance Institutions in Treaties
- A Note on the Deterrence Effects of the Forfeiture of Illegal Gains
- Fostering Regulatory Compliance: The Role of Environmental Self-Auditing and Audit Policies
- Free-Riding on Altruistic Punishment? An Experimental Comparison of Third-Party Punishment in a Stand-Alone and in an In-Group Environment
- Corporatization and Firm Performance: Evidence from Publicly-Provided Local Utilities
- Securities Class Actions: A Helping Hand for Bank Regulators in Trouble?
- The Multiplier Effect of Public Expenditure on Justice: The Case of Rental Litigation
