Empirical Methods in Merger Analysis: Econometric Analysis of Pricing in FTC v. Staples

Authors

Jonathan BakerFollow
Orley Ashenfelter, Princeton University
David Ashmore
Suzanne Gleason
Daniel Hosken, Government of the United States of America - Federal Trade Commission

Document Type

Article

Publication Date

January 2006

Volume

13

Issue

2

First Page

265

Last Page

279

Abstract

In 1997, the US Federal Trade Commission challenged the proposed merger of two office supply superstores, Staples and Office Depot in US District Court. Both the government and merging parties presented econometric studies examining the merger's likely impact on consumer pricing, predicting a price increase of 8.6% and 0.9% respectively. This article uses the extensive public record to provide a detailed discussion of the econometric models used in the case and to show how differences between the models led to the discrepancy between these estimates.

Recommended Citation

Jonathan Baker, Orley Ashenfelter, David Ashmore, Suzanne Gleason & Daniel Hosken, Empirical Methods in Merger Analysis: Econometric Analysis of Pricing in FTC v. Staples, 13 International Journal of the Economics of Business 265 (2006).
Available at: https://digitalcommons.wcl.american.edu/facsch_lawrev/1909