Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202374 
Authors: 
Year of Publication: 
2008
Series/Report no.: 
EAG Discussion Paper No. EAG 08-8
Publisher: 
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG), Washington, DC
Abstract: 
In this paper I describe a method for analyzing mergers in industries in which it is more cost effective to close capacity than to idle it. The method can be used to define markets, to assess the likelihood of competitive effects and to evaluate divestitures. I also discuss the method’s data requirements and how it can be modified to deal with the types of issues that often arise during an antitrust investigation.
Subjects: 
Merger
Capacity
Competition
Antitrust
Critical Loss
JEL: 
L11
L40
K21
Document Type: 
Working Paper

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