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Article
Empirical Methods in Merger Analysis: Econometric Analysis of Pricing in FTC v. Staples
Contributions to Books
  • Jonathan B. Baker, American University Washington College of Law
Description

In 1997, the US Federal Trade Commission challenged the proposed merger of two office supply superstores, Staples and Office Depot in US District Court, 970 F.Supp. 1066 (DDC 1997). Both the government and merging parties presented econometric studies examining the merger’s likely impact on consumer pricing, predicting a price increase of 8.6% and 0.9% respectively. This article uses the extensive public record to provide a detailed discussion of the econometric models used in the case and to show how differences between the models led to the discrepancy between the estimates.

Publication Date
1-1-2009
Keywords
  • Antitrust,
  • Merger review,
  • Econometrics,
  • Empirical methods
Citation Information
Baker, Jonathan, et al. “Empirical Methods in Merger Analysis: Econometric Analysis of Pricing in FTC v. Staples.” In Recent Developments in Monopoly and Competition Policy. International Library of Critical Writings in Economics Series, edited by George Norman, 353-367. Northampton, MA: Edward Elgar, 2008.