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