CRA economists advised counsel to Office Depot throughout a review by the Federal Trade Commission (FTC) of its proposed $1.2 billion merger with OfficeMax. The FTC ultimately closed its Second Request investigation, noting that the merger is unlikely to lessen competition in the sale of consumable office supplies.
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...