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In this chapter, the author explains why gross margins and diversion ratios are crucial for understanding the economic principles that underlie the unilateral effects of horizontal mergers involving differentiated products, and for quantifying these unilateral effects.
This chapter appears in the 2023 edition of Antitrust Economics for Lawyers. For more information, click here.
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Our Toronto team advises clients on complex antitrust, merger, and regulatory matters in Canada, Europe, and the United States. We would like to take this...
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