The European Commission is increasingly relying on the use of econometric analysis in EU merger control. In particular, merger simulation models have been introduced to practical merger control cases as an additional tool to assess expected unilateral effects.
Merger simulation models predict post-merger prices based on information about a set of pre-merger market conditions and certain assumptions about the behavior of the firms in the relevant market. The estimation of demand or price elasticities is the central step in the assessment of merger effects. Indeed, elasticities reflect the degree of substitutability of one good for another and are useful to estimate the proportion of a brand’s sales that would be diverted to competing brands in the case of an increase in the price of that brand.
EE&MC has considerable know how on merger simulation models and demand functions.
- 20161118 CCR 3 autumn 2016 European School in mergers.pdfEE&MC on European School in mergers
- Merger Simulation Models - Part 4.pdfEE&MC on merger models
- 20131202 CCR Autumn 3 2013 en.pdfEE&MC on the design of models
- 20131014 CCR Autumn 2 2013 en.pdfEE&MC on auction models
- 20130923 CCR Fall 1 2013 en.pdfEE&MC on demand models
- CCR Spring 20130306.pdfEE&MC on UPP, GUPPI and IPR
- Merger Simulation Models 04.pdfEE&MC on merger simulation models
- Tying Bundling Vertical Merger Guidelines 04.pdfEE&MC on tying & bundling in non-horizontal mergers
- Input Customer Foreclosure 04.pdfEE&MC on input & customer foreclosure in non-horizontal mergers
- Market Definition 02.pdfEE&MC on market definition
- Economic expert testimonies requirements 05.pdfEE&MC on Conjoint Analysis