Munich Personal RePEc Archive

New Directions in Price Test for Market Definition

Zipitria, Leandro (2010): New Directions in Price Test for Market Definition.

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The appropriate definition of the relevant market is the main task in competition cases. But this definition, and its application, has proved difficult in abuse of dominance cases, mainly because of the cellophane fallacy. I offer new interpretations for the cointegration test and its vector error correction representation, in antitrust market definition. Then I apply them to define the beer market in Uruguay as an example.

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