As a predictor of post-merger price competition, “willingness to pay” is a potentially powerful tool that federal antitrust agencies are increasingly relying on when assessing proposed hospital mergers. The agencies’ increasing reliance on the technique means that a thorough understanding of it is essential for attorneys involved in hospital merger transactions.
Unpacking market power: Why industry prices fell following a merger
The article “Estimating industry conduct using promotion data,” published in the RAND Journal of Economics by CRA’s Christian Michel, with Jose Manuel Paz y...