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.
Market Definition
Market Definition
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