Rethinking Shipments Asymmetries

A modification of a well-known shipments test for geographic market definition may be useful in identifying antitrust markets. By recognizing the possible significance of a high LIFO value and a notably lower LOFI value, and searching for possible barriers to product entry that could explain the asy...

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Veröffentlicht in:Review of industrial organization 1993-10, Vol.8 (5), p.579-597
Hauptverfasser: CRANE, STEVEN E., WELCH, PATRICK J.
Format: Artikel
Sprache:eng
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Zusammenfassung:A modification of a well-known shipments test for geographic market definition may be useful in identifying antitrust markets. By recognizing the possible significance of a high LIFO value and a notably lower LOFI value, and searching for possible barriers to product entry that could explain the asymmetry, analysts can reduce the chances of adopting an overly broad geographic market. This is illustrated by comparing the results from applying the shipments test to those from residual demand estimations, and by reviewing the evidence and findings in several recent antitrust proceedings in light of the asymmetric shipments patterns they report.
ISSN:0889-938X
1573-7160
DOI:10.1007/BF01024247