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Pittman, Russell W.
Year of Publication: 
Series/Report no.: 
EAG Discussion Paper No. EAG 21-2
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG), Washington, DC
This paper presents a non-technical introduction to three economic tools that have in recent years become widespread in competition law enforcement in general and in the analysis of proposed mergers in particular: critical loss analysis, upward pricing pressure, and the vertical arithmetic. In addition, for each tool, its use in a recent U.S. merger case is illustrated: for critical loss analysis, the Novelis/Aleris merger; for upward pricing pressure, the GE/Electrolux merger; and for the vertical arithmetic, the Comcast/NBCU joint venture.
Merger enforcement
Critical loss analysis
Upward pricing pressure
Vertical arithmetic
Horizontal mergers
Vertical mergers
Antitrust economics
Document Type: 
Working Paper

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