CRA economists supported the US Federal Trade Commission (FTC) throughout its review of the proposed $6.3 billion merger of Staples and Office Depot. CRA economists and Senior Consultant to CRA Professor Carl Shapiro analyzed the antitrust and competitive issues around the sale and distribution of consumable office supplies. Following a May 10, 2016 ruling granting the FTC’s preliminary injunction to block the merger, the parties announced that they would abandon the deal.
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...