Farrell and Shapiro (2008) have proposed a test – called the Upward Pricing Pressure (UPP) test – to evaluate potential unilateral effects of horizontal mergers. This comment shows that the UPP test – suitably reinterpreted and properly implemented – can be applied usefully also in industries where suppliers set prices through bidding competition.
Comments on the effect of algorithms and artificial intelligence on the likelihood of coordinated effects as described in Guideline 3 of the draft Merger Guidelines
In this note, we discuss how the Antitrust Division of the Department of Justice and the Federal Trade Commission (collectively, the Agencies) view the effect...