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This page contains the memorandum introducing the course, class schedule, reading materials, and class notes for the Merger Antitrust Law course taught during the 2021 fall semester at Georgetown. It also contains links to related supplemental materials on the Applied Antitrust web site. There is no textbook for this course. Everything you need will be linked to this page. Memorandum introducing the course
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Required Reading |
Comments and Optional Reading |
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Unit 1 |
Merger Antitrust Law: TransDigm/Takata |
Unit 1 class slides (Classes 1 and 2) |
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Class 1 |
Tuesday, August 31 Introduction |
Memorandum introducing the course Class schedule 5.1 (November 5) Merger Antitrust Law: Introduction to Substance and Process (class notes) There is no homeworks assignment for this class |
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Class 2 |
Thursday, September 2 TransDigm/Takata (con't) Calls for reform of merger antitrust law |
Merger Antitrust Law: Introduction to Substance and Process (class notes) Class 2 homework assignment (optional in the first week) FTC video of July 1, 2021, open meeting (excerpts of Section 5 Policy Statement discussion) |
Demand curves and consumer surplus (YouTube videos): Marginal Revolution University, The Demand Curve Marginal Revolution University, A Deeper Look at the Demand Curve Marginal Revolution University, What Is Deadweight Loss?
Dale Collins, Antitrust on the Brink: The Calls for Radical Reform, Presentation to the Antitrust Law Association (Sept. 16, 2021) (slides) |
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Unit 2 |
Predicting Merger Antitrust Enforcement Challenges |
Unit 2 class slides (Class 3) |
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Class 3 |
Tuesday, September 7 Predicting merger antitrust enforcement challenges |
U.S. Dep't of Justice & Fed. Trade Comm'n, Horizontal Merger Guidelines (rev. Aug. 19, 2010) Predicting Merger Antitrust Enforcement Challenges (class notes) See Unit 2 class sides for instructor's answer |
Evolution of the Merger Guidelines Carl Shapiro, The 2010 Horizontal Merger Guidelines: From Hedgehog to Fox in Forty Years, 77 Antitrust 701 (2010). Christine S. Wilson, Comm'r, Fed. Trade Comm'n, The Neo-Brandeisian Revolution: Unforced Errors and the Diminution of the FTC, Prepared Remarks before the ABA Antitrust Law Section’s 2021 Fall Forum (Nov. 9, 2021)
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Unit 3 |
The DOJ/FTC Merger Review Process |
Unit 3 class slides (Class 4 and first part of Class 5) |
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Class 4 |
Thursday, September 9 |
The DOJ/FTC Merger Review Process (class notes)
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± Hart-Scott-Rodino Act, Clayton Act § 7A, 18 U.S.C. § 18a (Premerger notification and waiting period) ± HSR Form (ver. 1.0.2) (updated Aug. 4, 2017) ± HSR form instructions (Sept. 25, 2019) Note: These forms may not display on some browsers. If you do not get the proper forms, please hit the "download" button on your browser and view the download on Adobe Acrobat Viewer (or just search for the forms using your favorite search engine). Revised Jurisdictional Thresholds for Section 7A of the Clayton Act, 87 Fed. Reg. 3541 (Jan. 24, 2022) (effective Feb. 23, 2022) S. 228: Merger Filing Fee Modernization Act of 2021 (updated August 31, 2021: On May 13, 2021, the Senate Judiciary unanimously approved the bill without amendment and reported it to the floor. Subsequently, the bill was incorporated as Section 6202 of the United States Innovation and Competition Act of 2021, S. 1260, 117th Cong. (passed Senate June 8, 2021)) Second request investigations DOJ Model Second Request (Nov. 28, 2016) FTC Model Second Request (Apr. 2019) Other supplemental materials ± DOJ Merger Enforcement web page ± DOJ and FTC, Annual Report to Congress for Fiscal Year 2019 (July 2020) (latest published report) Makan Delrahim, It Takes Two:Modernizing the Merger Review Process, Prepared Remarks Before the 2018 Global Antitrust Enforcement Symposium, Washington, DC (Sept. 25, 2018) Case study for homework assignment Albertsons/Safeway case study (complete) |
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Unit 4 |
Merger Antitrust Settlements |
Unit 4 class slides (for Class 5) For additional supplemental materials, see13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com |
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Class 5 |
Tuesday, September 14 Settlements
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Unit 4. Merger Antitrust Settlements (class notes) There is no homework assignment for this class
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Albertsons/Safeway case study (complete) Agency materials: DOJ Makan Delrahim,Ass't Att'y Gen., U.S. Dep't of Justice, Antitrust Div., Improving the Antitrust Consensus, Prepared Remarks Before the New York State Bar Association Antitrust Section, New York, NY (Jan. 25, 2018) U.S. Dep't of Justice, Antitrust Div., Antitrust Division Manual Ch. 4 D: Negotiating and Entering Consent Decrees (5th ed. updated Mar. 2014) U.S. Dep't of Justice, Antitrust Div., Antitrust Division Policy Guide to Merger Remedies (rev. June 2011) (news release) Agency materials: FTC Fed. Trade Comm’n, Bureau of Competition, Negotiating Merger Remedies (Jan. 2012) Fed. Trade Comm'n, The FTC’s Merger Remedies 2006-2012: A Report of the Bureaus of Competition and Economics (Jan. 2017) (FTC news release) Dan Ducore & Naomi Licker, Bureau of Competition, Fed. Trade Comm'n, Looking Back (Again) at FTC Merger Remedies (Feb. 3, 2017) Fed. Trade Comm'n, Bureau of Competition, Frequently Asked Questions About Merger Consent Order Provisions (downloaded August 8, 2019) Deborah L. Feinstein, Dir., Bureau of Competition, Fed. Trade Comm'n, The Significance of Consent Orders in the Federal Trade Commission’s Competition Enforcement Efforts (Sept. 17, 2013) Withdrawal of FTC 1995 Policy Statement on Prior Approvals Press Release, Fed. Trade Comm’n, FTC Acts To Reduce Prior-Approval Burden on Companies in Merger Cases (June 22, 1995) Fed. Trade Comm'n, Notice and Request for Comment Regarding Statement of Policy Concerning Prior Approval and Prior Notice Provisions in Merger Cases, 60 Fed. Reg. 39745 (Aug. 3, 1995). Press Release, Fed. Trade Comm’n, FTC Rescinds 1995 Policy Statement that Limited the Agency’s Ability to Deter Problematic Mergers (July 21, 2021). Dissenting Statement of Commissioner Noah Joshua Phillips (July 21, 2021) Other materials Jonathan M. Jacobson, Issues in Antitrust Consent Decrees, Presented to the Department of Justice Antitrust Division (Apr. 26, 2018) |
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Unit 5 |
Merger Antitrust Litigation |
Unit 5 class slides (for class 6) For additional supplemental materials, see 14. Merger Antitrust Litigation in AppliedAntitrust.com |
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Class 6 |
Thursday, September 16 Settlements
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Unit 5. Merger Antitrust Litigation (class notes) There is no homework assignment for this class
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The Course of Litigation: EnergySolutions’ Acquisition of Waste Control Specialists (Nov. 16, 2016) Planet Money, Episode 438: Mavericks, Monopolies and Beer (Feb. 23, 2013) (ABI/Grupo Modelo) |
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Unit 6 |
Hertz/Avis Budget/Dollar Thrifty |
For additional supplemental materials, see 13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com |
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Class 7 |
Tuesday, September 21 The 2010 Hertz/Dollar Thrifty deal
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There are no class notes for this class Class 7 homework assignment
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YouTube videos Present value of a perpetuity (perpetual annuity) |
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Class 8 |
Thursday, September 23 Antitrust considerations and the merger agreement The bidding war with Avis |
Allocating Antitrust Risk in Merger Agreements
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Risk-Shifting in Hertz/Dollar Thrifty (optional class notes) For a collection of antitrust-related provisions appearing in merger agreements, see Dale Collins, Sample Antitrust-Related Provisions in M&A Agreements, AntitrustUnpacked.com (July 2, 2018) See Hertz/Avis Budget/Dollar Thrifty: The Bidding War for a collection on SEC materials and press releases on the bidding war for Dollar Thrifty between Hertz and Avis Budget.
Anthem/Cigna contract litigation In re Anthem-Cigna Merger Litig., No. CV 2017-0114-JTL, 2020 WL 5106556 (Del. Ch. Aug. 31, 2020) (unpublished), judgment entered, (Del. Ch. 2020), summarily aff'd sub nom. Cigna Corp. v. Anthem, Inc., 251 A.3d 1015 (Del. 2021) (unpublished) |
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Unit 7 |
Competition Economics |
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Class 9 |
Tuesday, September 28 Part 1. Demand, Costs, and
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Competition Economics Part 1 (class notes) There are no reading materials for this class |
The Merger Working Group, International Competition Newtowrk, The Role of Economics and Economic Evidence in Merger Analysis (Apr. 2013). YouTube videos Revenue, Costs and Profit Part 1 Revenue, Costs and Profit Part 2 Revenue, Costs and Profit Part 3 Marginal Revolution University, The Demand Curve Marginal Revolution University, A Deeper Look at the Demand Curve Marginal Revolution University, The Demand Curve Shifts Marginal Revenue for a Monopolist Facing Linear Demand Finding a Revenue Function from a Linear Demand Function Marginal Revolution University, The Supply Curve Marginal Revolution University, A Deeper Look at the Supply Curve Marginal Revolution University, The Supply Curve Shifts Marginal Revolution University, The Equilibrium Price and Quantity Marginal Revolution University, Exploring Equilibrium Marginal Revolution University. Maximizing Profit Under Competition Dennis W. Carlton & Jeffrey M. Perloff, Modern Industrial Organization (4th ed. 2005). A Marginal Revenue Problem Step-by-Step (by Step) A Profit-Maximization Problem Step-by-Step (by Step) See also Dave Berry, Up in the Air on the Question of Gravity, Baltimore Sun, Mar. 16, 1997, at 3J
Completely optional: If you want to understand derivatives and would like a quick introduction, see the following two YouTube videos: Derivatives... What? (on the theory of derivatives) Derivatives... How? (on calculating the derivative--first 6.5 minutes is sufficient) |
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Class 10 |
Thursday, September 30 Part 2. Markets and Market Equilibrium
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Basic Competition Economics Part 2 (class notes) There are no reading materials for this class
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Commentary ± Kenneth G. Elzinga & David E. Mills, The Lerner Index of Monopoly Power: Origins and Uses (working paper Jan. 18, 2011), final version at 101 Am. Econ. Rev. 558 (2011). YouTube videos How Substitutes and Complements Affect Demand Marginal Revolution University, Elasticity of Demand Marginal Revolution University, Calculating Elasticity of Demand Marginal Revolution University, Elasticity and its Applications Marginal Revolution University, Calculating the Elasticity of Demand Intuition for Monopoly and Elasticity Marginal Revolution University, The Equilibrium Price and Quantity Marginal Revolution University, Exploring Equilibrium Marginal Revolution University, Introduction to the Competitive Firm Marginal Revolution University, Maximizing Profit Under Competition How to Solve Cournot Problem: Algebra-Based Solution Liam Malloy, Cournot Asymmetric Costs and n Firms Bertrand Oligopoly (solving a Bertrand oligopoly problem) |
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OPTIONAL |
Friday, October 1 |
Optional economics review session |
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Unit 8 |
Sanford Health/Mid Dakota Clinic |
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Class 11 |
Tuesday, October 5 Analysis of the Eight Circuit's opinion Institutional setting The prima facie case Relevant product markets Relevant geographic markets
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Introduction to Formal Horizontal Merger Analysis |
Complaint for Temporary Restraining Order and Preliminary Injunction Pursuant to Section 13(b) of the Federal Trade Commission Act, FTC v. Sanford Health, No. 1:17-cv-00133-DLH-CSM (D.N.D. filed June 22, 2017; redacted version filed June 23, 2017) Memorandum of Decision, Findings of Fact, Conclusions of Law, and Order, FTC v. Sanford Health, No. 1:17-cv-00133-ARS (D.N.D. Dec. 15, 2017) (district court's memorandum supporting the entry of the preliminary injunction) U.S. Dep't of Justice & Fed. Trade Comm'n, Horizontal Merger Guidelines (rev. Aug. 19, 2010) Evolution of the Merger Guidelines YouTube videos David Evans, Hypothetical Monopoly Test (SSNIP) Superseded Merger Guidelines U.S. Dep't of Justice & Fed. Trade Comm'n, Horizontal Merger Guidelines (Apr. 8, 1997) U.S. Dep't of Justice, Merger Guidelines (June 14, 1984) (published at 49 Fed. Reg. 26,823) U.S. Dep't of Justice, Merger Guidelines (June 14, 1982) (published at 47 Fed. Reg. 28,493) Fed. Trade Comm'n, Statement Concerning Horizontal Merger Guidelines (June 14, 1982) U.S. Dep't of Justice, Merger Guidelines (May 30, 1968) Note 1: The 1968, 1982, 1984 (except for Section 4), 1992, and 1997 Merger Guidelines have been superseded by the 2010 Merger Guidelines. Note 2: Section 4 of the 1984 Merger Guidelines, which addresses nonhorizontal mergers, was superseded by the 2020 Vertical Merger Guidelines (June 30, 2020). On September 15, 2021, the FTC withdrew from the 2020 Vertical Merger Guidelines. See News Release, Fed. Trade Comm'n, Federal Trade Commission Withdraws Vertical Merger Guidelines and Commentary (Sept. 15, 2021). The DOJ did not withdraw, although it raised some questions about the VMGs and said it would work with the FTC on revisions. See News Release, U.S. Dep't of Justice, Justice Department Issues Statement on the Vertical Merger Guidelines (Sept. 15, 2021) .The Seminal Cases of the 1960s
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Class 12 |
Thursday, October 7 Analysis of the Eight Circuit's opinion The PNB presumption Defenses Power buyers defense Entry defense Efficiencies defense Failing firm |
Introduction to Formal Horizontal Merger Analysis
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± Herbert Hovenkamp & Carl Shapiro, Horizontal Mergers, Market Structure, and Burdens of Proof, 127 Yale L.J. 1996 (2018) John Kwoka, The Structural Presumption and the Safe Harbor in Merger Review: False Positives or Unwarranted Concerns?, 81 Antitrust L.J. 837 (2017) Sean P. Sullivan, What Structural Presumption?: Reuniting Evidence and Economics on the Role of Market Concentration in Horizontal Merger Analysis, 42 J. Corp. L. 403 (2016) Peter C. Carstensen, The Philadelphia National Bank Presumption: Merger Analysis in an Douglas H. Ginsburg & Joshua D. Wright, Philadelphia National Bank: Bad Economics, Bad Law, Good Riddance, 80 Antitrust L.J. 377 (2015) ± Volker Nocke & Michael D. Whinston, Concentration Screens for Horizontal Mergers (NBER Working Paper No. 27533, July 2020) |
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Tuesday, October 12 |
Legislative Monday NO CLASS |
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Unit 9 |
H&R Block/TaxACT |
Unit 9a class slides (market definition) (Classes 13-16) |
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Class 13 |
Thursday, October 14 Analysis of the district court opinion Institutional setting Market definition: (Brown Shoe factors) |
Market Definition (class notes) (rev. Oct. 27, 2021) |
Generally AppliedAntitrust.com, Market Definition 1 ABA Section of Antitrust Law, Antitrust Law Developments ch. 6 (8th ed. 2017) (market definition). This is the best complication of the current law on market definition. It is the first source to which you should turn if you have questions about how the courts apply the law. ± Serge Moresi, Steven C. Salop & John Woodbury, Market Definition in Merger Analysis (Feb. 9, 2017) ± Malcolm Coate & Jeffrey Fischer, Why Markets Matter for Evidence-Based Merger Analysis (Jan. 2010) ± Jonathan B. Baker, Market Definition: An Analytical Overview, 74 Antitrust L.J. 129 (2007). ± Jonathan B. Baker & Timothy F. Bresnahan, Economic Evidence in Antitrust: Defining Markets and Measuring Market Power in Handbook of Antitrust Economics 1 (Paolo Buccirossi ed., 2008). ± Gregory J. Werden, The History of Antitrust Market Delineation, 76 Marquette L. Rev. 123 (1992). Criticism ± Louis Kaplow, Why (Ever) Define Markets?, 124 Harv. L. Rev. 437 (2010) Louis Kaplow, Market Definition Alchemy, 57 Antitrust Bull. 915 (2012) Louis Kaplow, Market Definition: Impossible and Counterproductive, 79 Antitrust L.J. 361 (2013) YouTube The Global Antitrust Institute, Market Definition (general introduction) H&R Block/TaxACT commentary Marc Remer & Frederick R. Warren-Boulton, United States v. H&R Block: Market Definition in Court since the 2010 Merger Guidelines, 59 Antitrust Bull. 599 (2014). ± Malcolm B. Coate, Market Definition in Differentiated Goods When the Final Consumer Buys the Good: Insights from the H&R Block Case (Feb. 12, 2014). ± Joseph J. Simons & Malcolm B. Coate, Should DOJ’s Controversial Approach to Market Definition Control Merger Litigation, the Case of US v. H&R Block (Oct. 24, 2013). ± James A. Keyte, United States v. H&R Block: The DOJ Invokes Brown Shoe to Shed the Oracle Albatross, Antitrust, Spring 2012, at 32. ± Deborah Feinstein, The Significance of H&R Block: Brown Shoe Meets Merger Simulation, Antitrust, Spring 2012, at 5.
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Class 14 |
Tuesday, October 19 Analysis of the district court opinion Market definition (Critical loss) |
Class 14 reading guidance (revised October 15 to add new Tronox excerpt) Unit 9 reading materials (rev. Oct. 15, 2021) Market Definition (class notes) (rev. Oct. 27, 2021) Instructor's answer (rev. 1 Oct 20)
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Critical loss analysis ± Joseph Farrell & Carl Shapiro, Improving Critical Loss Analysis, Antitrust Source, Feb. 2008. ± Michael Katz & Carl Shapiro, Further Thoughts on Critical Loss, Antitrust Source, Mar. 2004 ± Michael Katz & Carl Shapiro, Critical Loss: Let’s Tell the Whole Story, Antitrust, Spring 2003 Daniel P. O’Brien & Abraham L. Wickelgren, A Critical Analysis of Critical Loss Analysis, 71 Antitrust L.J. 161 (2003) ± Carl Shapiro, Mergers with Differentiated Products, Antitrust, Spring 1996, at 23. ± Oxera, "Could: or :Would"? The Difference between Two Hypothetical Monopolists (Nov. 2008) ± Serge Moresi & Hans Zenger, Recapture Ratios In Merger Analysis (Oct. 29, 2017). Øystein Daljord & Lars Sørgard, Single-Product Versus Uniform SSNIPs, 31 Int'l Rev. L. & Econ. 142 (2011) (± working paper version) See generally AppliedAntitrust.com, Market Definition |
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Class 15 |
Thursday, October 21 Analysis of the district court opinion Market definition (diversion ratio tests) |
CATCH-UP Unit 9 reading materials (rev. Oct. 15, 2021) Market Definition (class notes) (rev. Oct. 27, 2021) There is no homework assignment for this class |
± Oliver Budzinski & Isabel Ruhmer, Merger Simulation in Competition Policy: A Survey (working paper Jan. 2009), final version at 6 J. Competition L. & Econ. 277 (2010). |
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Class 16 |
Tuesday, October 26 Analysis of the district court opinion PNB presumption Ease of entry defense Coordinated effects Elimination of a "maverick" |
Class 16 reading guidance (originally assigned for Class 15) Anticompetitive Effects in Horizontal Mergers (class notes--complete) Downward-Pricing Pressure Defenses Class 16 homework assignment (originally assigned for Class 15)
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1 ABA Section of Antitrust Law, Antitrust Law Developments 361-69 ch. 6 (8th ed. 2017) (identifying market participants; determining market share and concentration). Coordinated effects 1 ABA Section of Antitrust Law, Antitrust Law Developments 369-72 (8th ed. 2017) (coordinated effects). Janusz A. Ordover, Coordinated Effects, in 2 Issues In Competition Law and Policy 1359 (ABA Section of Antitrust Law 2008). ± Jonathan B. Baker, Mavericks, Mergers and Exclusion: Proving Coordinated Competitive Effects Under the Antitrust Laws, 77 N.Y.U.L. Rev. 135 (2002). William J. Kolasky, Coordinated Effects in Merger Review: From Dead Frenchmen to Beautiful Minds and Mavericks, Prepared Remarks Before the ABA Section of Antitrust Law Spring Meeting Washington, DC (Apr. 24, 2002). Oxera, The Ties that Bind: When Is Retaliation Effective and Credible for Tacit Collusion? (May 2008) Robert H. Porter, Mergers and Coordinated Effects, 73 Int'l J. Indus. Org. ___ (2020) See generally AppliedAntitrust.com, Coordinated Effects |
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Class 17 |
Thursday, October 28 Analysis of the district court opinion Unilateral effects Efficiencies defense |
Anticompetitive Effects in Horizontal Mergers (class notes) Downward-Pricing Pressure Defenses (class notes)
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Unilateral effects 1 ABA Section of Antitrust Law, Antitrust Law Developments 372-74 (8th ed. 2017) (unilateral effects). YouTube videos: The Global Antitrust Institute, Introduction to Unilateral Effects Howard Chang, Diversion Ratios Richard Schmalensee, Upward Pricing Pressure Test ± Herbert Hovenkamp, Analyzing Horizontal Mergers: Unilateral Effects in Product-Differentiated Markets (2009) Gregory J. Werden, Unilateral Competitive Effects of Horizontal Mergers I: Basic Concepts and Models, in 2 Issues In Competition Law and Policy 1319 (ABA Section of Antitrust Law 2008). Gregory J. Werden & Luke M. Froeb, Unilateral Competitive Effects of Horizontal Mergers II: Auctions and Bargaining, in 2 Issues In Competition Law and Policy 1343 (ABA Section of Antitrust Law 2008). ± Carl Shapiro, Unilateral Effects Calculations (rev. Oct. 2010) ± Oxera, Unilateral Effects Analysis and Market Definition: Substitutes in Merger Cases? (June 2011) ± Serge Moresi & Hans Zenger, Aggregate Diversion and Market Elasticity (June 17, 2017) ± LEAR, Merger Screen and the Use of Price Pressure Tests (Feb. 2013) ± Steven C. Salop & Serge Moresi, Updating the Merger Guidelines: Comments (Nov. 9, 2009) ± László Bokor, Strictness and Accuracy of Simple Price Tests of Merger Control (Oct. 2019) ± Charles Taragin & Margaret Loudermilk, Using Measures of Competitive Harm for Optimal Screening of Horizontal Mergers (Oct. 2, 2019) ± Nathan Miller & Gloria Sheu, Quantitative Methods for Evaluating the Unilateral Effects of Mergers (July 20, 2020) ± Jéssica Dutra & Tarun Sabarwal, Antitrust Analysis with Upward Pricing Pressure and Cost Efficiencies, 15 PloS one 1 (2020) ± Gregory J. Werden & Luke M. Froeb, Choosing among Tools for Assessing Unilateral Merger Effects (working paper), final version at 7 Eur. Competition J. 155 (2011). Nathan H. Miller, Marc Remer, Conor Ryan & Gloria Sheu, Upward Pricing Pressure as a Predictor of Merger Price Effects (EAG Discussion Paper, No. 16-2, Mar. 2016), final version at 52 Int'l J. Indus. Org. 216 (2017). For a more detailed treatment of the use of diversion ratios in unilateral effects analysis than found in U.S. cases, see ± UK Office of Fair Trading, Anticipated Acquisition of the Online DVD Rental Subscription Business of Amazon Inc. by LOVEFiLM International Limited, No. ME/3534/08 (2008) See also ± Marc Ivaldi, Bruno Jullien, Patrick Rey, Paul Seabright & Jean Tirole, The Economics of Unilateral Effects (Interim Report for DG Competition, European Commission (Nov. 2003)) Efficiencies defense Orley C. Ashenfelter, Daniel S. Hosken & Matthew C. Weinberg, Efficiencies Brewed: Pricing and Consolidation in the US Beer Industry (working paper Aug. 14, 2013), final version at 46 RAND J. Econ. 328 (2015). |
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Unit 10 |
Sysco/U.S. Foods |
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Class 18 |
Tuesday, November 2 Analysis of the district court opinion Cluster markets Targeted customer markets Auction theory of unilateral effects Power buyer defense |
Sysco/US Foods (class notes) (rev. Nov. 3, 2021) Downward-Pricing Pressure Defenses (class notes) There is no homework assignment for this class |
± Gregory J. Werden, The Hypothetical Monopolist Test in Sysco: A Litigation Muddle Needing Analytic Clarity, 12 J. Competition L. & Econ. 341 (2016) YouTube videos: Marginal Revolution University, What Is Opportunity Cost? |
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Class 19 |
Thursday, November 4 |
Continue with Class 18 materials Class 19 homework assignment (NEW) |
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Unit 11 |
Case Study Problem: Ice Cream Merger |
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Class 20 |
Tuesday, November 9 Analysis of Class 18 homework assignment |
Class 20 homework assignment (ungraded) NB: There are no reading guidance, reading materials, or class notes for this unit. Spend all of your time on the homework assignment. |
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OPTIONAL |
Wednesday, November 10 Analysis rubric Anticompetitive effects Downward-pricing pressure defenses |
OPTIONAL review session GRADED HOMEWORK ASSIGMENT |
Merger Antitrust Review: Formulas and Other Reference Materials See Final Exam below for revision history |
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Unit 12 |
Staples/Office Depot |
Unit 12 class slides (rev. Nov. 12, 2021) (added new slide 29 with an example of a δ/2 merger simulation) |
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Class 21 |
Thursday, November 11 Analysis of the district court opinion |
Review Market Definition, Anticompetitive Effects and Downward-Pricing Pressure Defenses class notes as needed There are no separate class notes or homework assignment for this class. Work on the graded homework assignment |
Original 1996 merger ± Orley Ashenfelter, David Ashmore, Jonathon B. Baker, Suzanne Gleason & Daniel S. Hosken, Econometric Methods in Staples (working paper Apr. 9, 2004), revised final version at Empirical Methods in Merger Analysis: Econometric Analysis of Pricing in FTC v. Staples, 13 Int'l J. Econ. Bus. 265 (2006). ± Serdar Dalkir & Frederick R. Warren-Boulton, Prices, Market Definition, and the Effects of Merger: Staples-Office Depot (1997), in The Antitrust Revolution: Economics, Competition, and Policy (john e. Kwoka, J. & Lawrence J. white eds., 7th ed. 2018). ± Jerry A. Hausman & Gregory K. Leonard, Documents Versus Econometrics in Staples (working paper Sept. 5, 1997). ± Mark D. Manuszak & Charles C. Moul, Prices and Endogenous Market Structure in Office Supply Superstores, 56 J. Indus. Org. 94 (2008). ± Jonathan B. Baker, Econometric Analysis in FTC v. Staples, 18 J. Pub. Pol'y & Marketing 11 (1999). ± Jonathan B. Baker & Robert Pitofsky, A Turning Point in Merger Enforcement: Federal Trade Commission v. Staples (working paper Oct. 2006), final version in Antitrust Stories 311 (Eleanor M. Fox & Daniel A. Crane eds., 2007).
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Unit 13 |
Potential Competition Mergers |
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Class 22 |
Tuesday, November 16 Milan/Perri go Medtronic/Covidien Mallinckrodt (Questcor)/Novartis) Steris/Synergy Health
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Potential competition mergers (class notes) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS Work on the graded homework assignment |
Additional case materials |
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Unit 14 |
Vertical Mergers |
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Class 23 |
Thursday, November 18 Vertical Merger Guidelines General Electric/Avio Comcast/NBCUniversal AT&T/Time Warner |
Vertical mergers (class notes) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS
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Additional case materials 2020 DOJ/FTC Vertical Merger Guidelines U.S. Dep't of Justice & Fed. Trade Comm'n, Vertical Merger Guidelines (June 30, 2020) Dissenting Statement of Commissioner Rohit Chopra (June 30, 2020) Dissenting Statement of Commissioner Rebecca Kelly Slaughter (June 30, 2020) Fed. Trade Comm'n, Commentary on Vertical Merger Enforcement (Dec. 2020) 2021 FTC withdrawal News Release, Fed. Trade Comm'n, Federal Trade Commission Withdraws Vertical Merger Guidelines and Commentary (Sept. 15, 2021) Statement of Chair Lina M. Khan, Commissioner Rohit Chopra, and Commissioner Rebecca Kelly Slaughter on the Withdrawal of the Vertical Merger Guidelines (Sept. 15, 2021) Prepared Remarks of Commissioner Rohit Chopra (Sept. 15, 2021) Dissenting Statement of Commissioners Noah Joshua Phillips and Christine S. Wilson (Sept. 15, 2021) Oral Remarks of Commissioner Christine S. Wilson (Sept. 15, 2021) 2021 DOJ response News Release, U.S. Dep't of Justice, Justice Department Issues Statement on the Vertical Merger Guidelines (Sept. 15, 2021) Double marginalization Marginal Revolution University, Double Marginalization Problem Luke Bessey, Managerial Economics - Double Marginalization Commentary ± Carl Shapiro & Herbert Hovenkamp, How Will the FTC Evaluate Vertical Mergers?, ProMarket.org (Sept. 23, 2021) ± Steven C. Salop, A Suggested Revision of the 2020 Vertical Merger Guidelines (May 2, 2021) Steven C. Salop, Invigorating Vertical Merger Enforcement, 127 Yale L.J. 1962 (2018) Jon Sallet, Dep. Ass't Att'y Gen., Antitrust Div., U.S. Dep't of Justice, The Interesting Case of the Vertical Merger (Nov. 17, 2016) |
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Monday, November 22 |
GRADED HOMEWORK ASSIGNMENT DUE BY 8:00 PM |
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Class 24 |
Thursday, November 23 |
Review of Graded Homework Assignment Instructor's answer (rev. Dec. 2, 2021 with additional notes to students)
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Class 25 |
Tuesday, November 30 AT&T/Time Warner (con't) Coca-Cola/Coca-Cola Enterprises |
There is no reading guidance for this class. Finish reading the AT&T/Time Warner opinion and Read the Coca-Cola materials Vertical mergers (class notes) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
± Carl Shapiro, Vertical Mergers and Input Foreclosure Lessons from the AT&T/Time Warner Case, 59 Rev. Indus. Org. 303 (2021) ± Dennis W. Carlton, Georgi V. Giozov, Mark A. Israel & Allan, Shampine, A Retrospective Analysis of the AT&T/Time Warner Merger (August 25, 2021), forthcoming in Journal of Law and Economics ± Gregory S. Crawford, Robin S. Lee, Michael D. Whinston & Ali Yurukoglu, AT&T/Time Warner and Antitrust Policy toward Vertical Mergers, CPI Antitrust Chronicle (July 2019). |
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Unit 15 |
Sabre/Farelogix |
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Class 26 |
Thursday, December 2 Analysis of the district court opinion |
There are no class notes for this unit THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
± Serge Moresi & Steven C. Salop, When Vertical is Horizontal: How Vertical Mergers Lead to Increases in “Effective Concentration" (2020) ± Kostis Hatzitaskos, Brad Howells & Aviv Nevo, A Tale of Two Sides: Sabre/Farelogix in the United States and the UK, J. European Competition L. & Prac. (June 26, 2021). |
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Final Review Session (optional) |
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OPTIONAL
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Friday, December 3
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OPTIONAL review session |
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FINAL EXAM |
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Tuesday, December 7 (8:30 AM) – |
5-hour Instructions for the 2021 exam
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Merger Antitrust Review: Formulas and Other Reference Materials
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