Critical Loss: Modeling and Application Issues

The Analysis of Innovation in FCC M&A Transactions from 1997 to 2015: Complete Version

We provide a methodology for geographic market definition when the product(s) being purchased or sold has an intrinsic geographic component, such as (1) the sale of commercial health plans and (2) the purchase of health care providers’ services by commercial health plans. In these situations, we show that a straightforward application of the Horizontal Merger Guidelines issued by the U.S. Department of Justice and the Federal Trade Commission (hereafter, Guidelines) that uses the customer or supplier location to define the geographic market is not sufficient and can result in markets that are unintuitively small. This is often addressed by applying an assumption about aggregating based on similar competitive conditions. The practice of relying on the assumption of similar competitive conditions across counties, metropolitan statistical areas, or other geographic areas, without a methodology to support this assumption, could lead to market definitions that are too narrow or too broad and could influence the assessments of the extent of market concentration and the presence or absence of market power. We outline a framework that is consistent with the Guidelines and does not require a reliance on the assumption of aggregation based on similar competitive conditions. JEL Classification L12, L40, K21, D42, I11

The paper analyses the challenges faced by the National Competition Authorities (NCA) of the emerging economies in the application of the econometric tests usually relied on in the merger control analysis. The relevant market and the degree of market concentration are usually defined on the basis of two econometric tests, namely, the Small but Significant and Non-Transitory Price Increase (SSNIP) test and the Herfindahl-Hirschman Index (HHI). Following the example of the US and the EU Merger Guidelines, the newly established NCAs of the emerging economies often refer to these two econometric tests in their merger guidelines without taking in consideration the challenges that they will have to face in applying them. The paper is a case study on Brazil and Argentina, and it aims at defining such challenges. The paper argues in favour of granting a broader margin of discretion to the NCAs of the emerging economies in applying such tests and in favour of the possibility to introduce alternative parameters to apply such tests in comparison to those ones identified by the US and the EU Merger Guidelines.

Estimating menstrual blood loss in women with normal and excessive menstrual fluid volume

Recent research investigating causes and control of annular gas flow has resulted in new concepts pertaining to gas migration. Previous investigations have identified that the combined effects of fluid loss volume reductions and static gel strength development control the actual pressure loss – and ultimately gas flow – in a cement column. The recently developed concept describes delayed development of cement gel strength as a means of preventing gas flow. Delaying gel strength development allows the cement column to transmit essentially full hydrostatic pressure, and thus prevent gas entry into the cement column, for an extended time period. Test results are presented showing that fluid loss rate decreases with time so that most volume losses due to fluid loss occur during the delayed gel strength period. Thus, stringent slurry fluid loss requirements for probable gas flow situations may be relaxed. The conclusion of the delayed gel strength phase is followed by rapid progression to the set state thus helping prevent gas entry into a cement column. Another feature of delayed gel strength development, shutdown safety factor, is also presented. Pumping of delayed gel strength cements can be restarted without excessive horsepower or pressure requirements in the event of a shutdown during placement. Subject paper presents laboratory test results and field case histories documenting use of delayed gel strength cement for prevention of gas migration.

The EU is gradually systematizing its approach to ex ante regulation (notably with the publication of the recent regulatory framework for Electronic communications). Market definition is viewed as an essential first step in this, with the ‘Hypothetical Monopoly Test’ a useful conceptual tool for use in the assessment. This paper examines the use of this test for market definition when there are several differentiated goods or services under consideration. It sets out an analytic framework, discusses the pros and cons of using the test and illustrates its use in a Telecom context.

Managers often set prices just-below a round number (e.g., $39)—a strategy that lowers price perceptions and increases sales. The authors question this conventional wisdom in a common consumer context: upgrade decisions (e.g., whether to upgrade a rental car or hotel room). Seven studies—including one field study—provide empirical evidence for a threshold-crossing effect. When a base product is priced at or just-above a threshold, consumers are more likely to upgrade and spend more money (studies 1–3) because they perceive the upgrade option as less expensive (study 4), and they place less weight on price (study 5). Testing theoretically motivated and managerially relevant boundary conditions, studies find that the threshold-crossing effect is mitigated under sequential choice (study 6) and when an upgrade price crosses an upper threshold (study 7). These studies demonstrate that a small increase in price on a base product can decrease price perceptions of an upgrade option and, thus, increase consumers’ likelihood to upgrade. Results suggest that just-below pricing, while sometimes advantageous at first, may not always be an optimal strategy for managers trying to encourage consumers to ultimately choose an upgrade option.

Mesenteric blood flow was measured in anaesthetized rats with a non-cannulating electromagnetic flow probe around the superior mesenteric artery. Reductions in blood flow were produced by intravenous bolus injections of angiotensin II (1-300 ng) and noradrenaline (3-300 ng) before and after the administration of frusemide (5 mg kg-1, i.v.). Loss of volume after frusemide was prevented by either a urinary bladder-intravenous shunt or replacement of urinary output by intravenous saline. Frusemide administration caused a small increase in baseline blood pressure of 3.2 +/- 1.3 mmHg (P less than 0.05) but did not change mesenteric blood flow. This dose of frusemide inhibited the vasoconstrictor responses to both angiotensin II and noradrenaline (P less than 0.01, two way analysis of variance). Responses to angiotensin II were inhibited to a greater extent. Acute bilateral nephrectomy or treatment with indomethacin (2 mg kg-1, i.v.) completely prevented the inhibitory effect of frusemide on the responses to angiotensin II and noradrenaline. To test whether frusemide-induced increased endogenous levels of angiotensin II may be responsible for the effects of frusemide on the vasoconstrictor responses, a separate group of rats were not given frusemide but were infused with exogenous angiotensin II (12.5-25 ng kg-1 min-1). This produced a small increase in mean blood pressure (4.0 +/- 1.4 mmHg, P less than 0.05) but did not change baseline mesenteric blood flow. Unlike frusemide, the responses to bolus injections of angiotensin II and noradrenaline were not changed by the infusion of angiotensin II. 5 It is suggested that frusemide may release directly or indirectly a prostanoid from the kidney (or a substance from the kidney which leads to the formation of a prostanoid) which inhibits constrictor responses in the peripheral vasculature.

Market Definition as a Social Construction

In a recent influential paper Coate et al. (2021) have criticized the sequential product-level approach to market definition in merger review. They argue that a simultaneous market-level approach to critical loss is more appropriate than a product-level critical loss analysis, because under certain plausible demand scenarios (nonlinear demand functions) the latter could yield the wrong answer on market definition—i.e., excessively broad or narrow markets. We extend their analysis by showing that a sequential product-level approach actually leads to an excessively narrow market definition when the typical nonlinear demand functions used in merger analysis are employed.

CT MEASURES OF INTRAPARENCHYMAL VASCULAR VOLUME IN COPD PATIENTS WITH AND WITHOUT PULMONARY HYPERTENSION

Implementing the Hypothetical Monopolist SSNIP Test with Multi-Product Firms

Competition investigations start with market definition, which establishes the perimeter of the competitive analysis. In this paper, we focus on the definition of economic markets in the pharmaceutical industry, where the entry of generics in different therapeutic areas provides a sequence of quasi-natural experiments involving a significant competitive shock for the originator producer. We show how generic entry modifies price and non-price competitive constraints over time, generating market-wide effects. Paradoxically, generic entry may soften the competitive pressure for brands other than the originator. We obtain these results by econometrically estimating time-varying price elasticities. We then apply the logic of the Hypothetical Monopolist Test to gauge the strength of competitive constraints under different market structures. Our results provide strong empirical support for an approach that defines relevant markets contingent on the theory of harm. We discuss the relevance of these findings in the context of ongoing cases.

This article presents an examination of the antitrust case brought by the US Department of Justice against the Microsoft Corporation. The article addresses the primary issues of market definition, market power and anticompetitive behavior which were central to the case. The economic arguments behind the government's positions and Microsoft's defenses are provided. The decisions of the US District and Circuit courts with respect to the legality of Microsoft's behavior regarding the monopolizing of the operating system market, attempting to monopolize the browser market and the tying of its operating system to its browser are also provided.

Treatment of Severe Relapsing-Remitting Multiple Sclerosis with High-Dose Immunosuppressive Therapy and Autologous Hematopoietic Cell Transplantation: 2-Year Follow-up Results of the HALT MS Clinical Trial (Immune Tolerance Network: ITN033AI)