When the Competition Bureau investigated the potential competitive effects of a $700 million merger between retailers Leon’s Furniture Limited and The Brick, Ltd, CRA was retained by counsel to Leon’s Furniture. CRA experts empirically tested whether prices were lower in local areas with Leon’s and The Brick compared to local areas with only The Brick, and found no such effect. Ultimately, the investigation closed without any remedy required.
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...