In this paper it is argued that, if two products or geographic areas belong in the same market, their relative price must be stationary. Hence stationarity tests like the ADF and the KPSS can be helpful in delineating the relevant market for Antitrust purposes, particularly for abuses of dominant positions and agreements between competitors. The proposed procedure is strictly relatedwith cointegration analysis but is simpler and has more general validity. An application to the Italian milk market illustrates the technique.
Using Stationarity Tests in Antitrust Market Definition / Forni, Mario. - In: AMERICAN LAW AND ECONOMICS REVIEW. - ISSN 1465-7260. - STAMPA. - 6:(2004), pp. 441-463.
Using Stationarity Tests in Antitrust Market Definition
FORNI, Mario
2004
Abstract
In this paper it is argued that, if two products or geographic areas belong in the same market, their relative price must be stationary. Hence stationarity tests like the ADF and the KPSS can be helpful in delineating the relevant market for Antitrust purposes, particularly for abuses of dominant positions and agreements between competitors. The proposed procedure is strictly relatedwith cointegration analysis but is simpler and has more general validity. An application to the Italian milk market illustrates the technique.
Pubblicazioni consigliate
I metadati presenti in IRIS UNIMORE sono rilasciati con licenza Creative Commons CC0 1.0 Universal, mentre i file delle pubblicazioni sono rilasciati con licenza Attribuzione 4.0 Internazionale (CC BY 4.0), salvo diversa indicazione.
In caso di violazione di copyright, contattare Supporto Iris
