Market share thresholds are important in assessing whether an agreement restricts competition or not. The quantification of market shares demands firstly that the relevant markets are defined.
There are a number of quantitative tests that have specifically been designed for the purpose of delineating markets. These tests consist of various econometric and statistical approaches. EE&MC applies some or all of the following:
- estimates of elasticities and cross-price elasticities for the demand of a product,
- tests based on similarity of price movements over time,
- the analysis of causality between price series,
- the analysis of similarity of price levels,
- the analysis of convergence of price levels,
- consumer preferences,
- evidence of substitution in the recent past,
- Hypothetical Monopolist test.