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 economists were 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.
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...