Empirical methods in merger analysis: Econometric analysis of pricing in FTC v. staples

Orley Clark Ashenfelter, David Ashmore, Jonathan B. Baker, Suzanne Gleason, Daniel S. Hosken

Research output: Contribution to journalReview article

26 Scopus citations

Abstract

In 1997, the US Federal Trade Commission challenged the proposed merger of two office supply superstores, Staples and Office Depot in US District Court. 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 these estimates.

Original languageEnglish (US)
Pages (from-to)265-279
Number of pages15
JournalInternational Journal of the Economics of Business
Volume13
Issue number2
DOIs
StatePublished - Jul 1 2006

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting (miscellaneous)
  • Economics and Econometrics

Keywords

  • Antitrust
  • Econometrics
  • Empirical Methods
  • Merger Review

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