DP15066 Mergers with Differentiated Products: Where do we Stand?

Author(s):	Tommaso Valletti, Hans Zenger
Publication Date:	July 2020
Keyword(s):	differentiated products, mergers, Unilateral Effects
JEL(s):	L11, L13, L40, L41
Programme Areas:	Industrial Organization
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=15066

On the occasion of the 10th anniversary of the 2010 U.S. Horizontal Merger Guidelines, this article provides an overview of the state of economic analysis of unilateral effects in mergers with differentiated products. Drawing on our experience with merger enforcement in Europe, we discuss both static and dynamic competition, with a special emphasis on the calibration of competitive effects. We also discuss the role of market shares and structural presumptions in differentiated product markets.