In this article, Steven Tenn describes the FTC’s approach in a recent litigation, FTC v. Advocate Health Care Network, where the FTC successfully challenged a proposed merger of two healthcare systems with hospitals in the northern suburbs of Chicago. He discusses the case from his perspective as the FTC’s economic expert in that matter.
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...