Sequential versus simultaneous market delineation: The relevant antitrust market for salmon

Niels Haldrup; Peter Møllgaard; Claus Kastberg Nielsen

Sequential versus simultaneous market delineation: The relevant antitrust market for salmon

Niels Haldrup, Peter Møllgaard, Claus Kastberg Nielsen

Department of Economics

Research output: Working paper › Research

20 Downloads (Pure)

Abstract

Delineation of the relevant market forms a pivotal part of most antitrustcases. The standard approach is sequential. First the product marketis delineated, then the geographical market is defined. Demand andsupply substitution in both the product dimension and the geographicaldimension will normally be stronger than substitution in either dimension.By ignoring this one might decide first to define products narrowly andthen to define the geographical extent narrowly ignoring the possibility ofa diagonal substitution. These reflections are important in the empiricaldelineation of product and geographical markets. Using a unique data setfor prices of Norwegian and Scottish salmon, we propose a methodologyfor simultaneous market delineation and we demonstrate that comparedto a sequential approach conclusions will be reversed.JEL: C3, K21, L41, Q22Keywords: Relevant market, econometric delineation, salmon.

Original language	English
Place of Publication	Frederiksberg
Publisher	Copenhagen Business School, CBS
Number of pages	24
Publication status	Published - 2005

Series	Working Paper / Department of Economics. Copenhagen Business School
Number	2-2005

Keywords

Relevant market
Econometric delineation
Salmon

Access to Document

wp2-2005Final published version, 262 KBLicence: CC BY-NC-ND

Cite this

Haldrup, N., Møllgaard, P., & Kastberg Nielsen, C. (2005). Sequential versus simultaneous market delineation: The relevant antitrust market for salmon. Copenhagen Business School, CBS. Working Paper / Department of Economics. Copenhagen Business School, No. 2-2005

@techreport{15a262b08eb511dba124000ea68e967b,

title = "Sequential versus simultaneous market delineation: The relevant antitrust market for salmon",

abstract = "Delineation of the relevant market forms a pivotal part of most antitrustcases. The standard approach is sequential. First the product marketis delineated, then the geographical market is defined. Demand andsupply substitution in both the product dimension and the geographicaldimension will normally be stronger than substitution in either dimension.By ignoring this one might decide first to define products narrowly andthen to define the geographical extent narrowly ignoring the possibility ofa diagonal substitution. These reflections are important in the empiricaldelineation of product and geographical markets. Using a unique data setfor prices of Norwegian and Scottish salmon, we propose a methodologyfor simultaneous market delineation and we demonstrate that comparedto a sequential approach conclusions will be reversed.JEL: C3, K21, L41, Q22Keywords: Relevant market, econometric delineation, salmon.",

keywords = "Markedsformer, Antitrust, Laks, Relevant market, Econometric delineation, Salmon",

author = "Niels Haldrup and Peter M{\o}llgaard and {Kastberg Nielsen}, Claus",

year = "2005",

language = "English",

series = "Working Paper / Department of Economics. Copenhagen Business School",

publisher = "Copenhagen Business School, CBS",

number = "2-2005",

address = "Denmark",

type = "WorkingPaper",

institution = "Copenhagen Business School, CBS",

}

TY - UNPB

T1 - Sequential versus simultaneous market delineation

T2 - The relevant antitrust market for salmon

AU - Haldrup, Niels

AU - Møllgaard, Peter

AU - Kastberg Nielsen, Claus

PY - 2005

Y1 - 2005

N2 - Delineation of the relevant market forms a pivotal part of most antitrustcases. The standard approach is sequential. First the product marketis delineated, then the geographical market is defined. Demand andsupply substitution in both the product dimension and the geographicaldimension will normally be stronger than substitution in either dimension.By ignoring this one might decide first to define products narrowly andthen to define the geographical extent narrowly ignoring the possibility ofa diagonal substitution. These reflections are important in the empiricaldelineation of product and geographical markets. Using a unique data setfor prices of Norwegian and Scottish salmon, we propose a methodologyfor simultaneous market delineation and we demonstrate that comparedto a sequential approach conclusions will be reversed.JEL: C3, K21, L41, Q22Keywords: Relevant market, econometric delineation, salmon.

AB - Delineation of the relevant market forms a pivotal part of most antitrustcases. The standard approach is sequential. First the product marketis delineated, then the geographical market is defined. Demand andsupply substitution in both the product dimension and the geographicaldimension will normally be stronger than substitution in either dimension.By ignoring this one might decide first to define products narrowly andthen to define the geographical extent narrowly ignoring the possibility ofa diagonal substitution. These reflections are important in the empiricaldelineation of product and geographical markets. Using a unique data setfor prices of Norwegian and Scottish salmon, we propose a methodologyfor simultaneous market delineation and we demonstrate that comparedto a sequential approach conclusions will be reversed.JEL: C3, K21, L41, Q22Keywords: Relevant market, econometric delineation, salmon.

KW - Markedsformer

KW - Antitrust

KW - Laks

KW - Relevant market

KW - Econometric delineation

KW - Salmon

M3 - Working paper

T3 - Working Paper / Department of Economics. Copenhagen Business School

BT - Sequential versus simultaneous market delineation

PB - Copenhagen Business School, CBS

CY - Frederiksberg

ER -