Resource title

Sequential versus simultaneous market - The relevant antitrust market for salmon

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Resource description

Delineation of the relevant market forms a pivotal part of most antitrustcases. The standard approach is sequential. First the product marketis delineated, then the geographical market is defined. Demand andsupply substitution in both the product dimension and the geographicaldimension will normally be stronger than substitution in either dimension.By ignoring this one might decide first to define products narrowly andthen to define the geographical extent narrowly ignoring the possibility ofa diagonal substitution. These reflections are important in the empiricaldelineation of product and geographical markets. Using a unique data setfor prices of Norwegian and Scottish salmon, we propose a methodologyfor simultaneous market delineation and we demonstrate that comparedto a sequential approach conclusions will be reversed.JEL: C3, K21, L41, Q22Keywords: Relevant market, econometric delineation, salmon.

Resource author

Niels Haldrup, Peter Møllgaard, Claus Kastberg Nielsen

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Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7633

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