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Sequential Versus Simultaneous Market Delineation: The Relevant Antitrust Market for Salmon

Publikation: Working paper/Preprint Working paperForskning

  • Niels Haldrup
  • Møllgaard Peter, Copenhagen Business School, Danmark
  • Afdeling for Nationaløkonomi
Delineation of the relevant market forms a pivotal part of most antitrust cases. The standard approach is sequential. First the product market is delineated, then the geographical market is defined. Demand andsupply substitution in both the product dimension and the geographical dimension will normally be stronger than substitution in either dimension. By ignoring this one might decide first to define products narrowly and then to define the geographical extent narrowly ignoring the possibility of a diagonal substitution. These reflections are important in the empirical delineation of product and geographical markets. Using a unique data set for prices of Norwegian and Scottish salmon, we propose a methodology for simultaneous market delineation and we demonstrate that compared to a sequential approach conclusions will be reversed.
UdgiverInstitut for Økonomi, Aarhus Universitet
Antal sider23
StatusUdgivet - 2005

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