When Canadian Tire announced plans to acquire sports retailer, Forzani Group, CRA’s experts undertook economic analysis to measure the extent of diversion between Canadian Tire’s and Forzani’s retail stores. Our work included econometric analysis of the extent to which Canadian Tire’s prices were national or responded to local competition. The Bureau cleared the merger.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...