CRA staff were engaged by a major hard disk drive manufacturer to provide economic analysis in connection with its proposed merger with a rival—the potential competitive effects of which were being assessed by the U.S. Federal Trade Commission and the European Commission. CRA’s team analyzed a variety of theoretical and empirical issues associated with the proposed transaction ranging from market definition and competitive effects to entry and efficiencies. CRA professionals met with representatives of the Federal Trade Commission and assisted counsel in their work before the European Commission’s investigative staff. Both agencies approved the merger without conditions.
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...