For a telecommunications merger, CRA economists developed a game theory model to address potential coordinated effects concerns by US antitrust authorities. In each local market, the model identified the “maverick” (i.e., the firm with the strongest incentive to cheat and undercut the monopoly price) and the “most forgiving firm” (i.e., the firm with the weakest incentive to punish cheaters). The model also showed that the merger would not change the incentives of these firms in any significant way and thus would not significantly increase the risk of coordination.
CRA adds Kevin Williams, Yale School of Management Professor, as academic affiliate to Antitrust Practice
“I am pleased to welcome Kevin to CRA,” said Paul Maleh, President and Chief Executive Officer of Charles River Associates. “Kevin is a recognized expert in...