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.
How capacity constraints shape unilateral price effects in horizontal mergers
Examples include hospitals with a fixed number of beds, and hotels with a fixed number of rooms. In the article “Unilateral Price Effects in Horizontal...