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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 2022 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 |
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Class 1 |
Tuesday, August 30 Introduction |
Memorandum introducing the course Merger Antitrust Law: Introduction to Substance and Process (class notes) Class 1 homework assignment (optional in the first week)
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TransDigm/Takata case study (complete) Note on Antitrust Hornbooks and Other Study Aids 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 Consumer Surplus? Marginal Revolution University, What Is Producer Surplus? Marginal Revolution University, What Is Deadweight Loss? Deadweight Loss- Key Graphs of Microeconomics Twombly/Iqbal Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) Ashcroft v. Iqbal, 556 U.S. 662 (2009) |
Unit 2 |
Predicting Merger Antitrust Enforcement Challenges |
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Class 2 |
Thursday, September 1 Predicting merger antitrust enforcement challenges |
U.S. Dep't of Justice & Fed. Trade Comm'n, Horizontal Merger Guidelines (rev. Aug. 19, 2010) (under DOJ/FTC review) Predicting Merger Antitrust Enforcement Challenges (class notes) (minor revisions Aug. 30, 2022) Class 2 homework assignment (optional in the first week)
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Commentary Evolution of the Merger Guidelines ± Joseph Farrell & Carl Shapiro, The 2010 Horizontal Merger Guidelines After 10 Years, 58 Rev. Indus. Org. 1 (2021) Craig T. Peters & Jeffrey M. Wilder, Ten Years of the 2010 HMG: A Perspective from the Department of Justice, 58 Rev. Indus. Org. 13 (2021) Alison Oldale, Joel Schrag & Christopher Taylor, The 2010 Horizontal Merger Guidelines at Ten: A View from the FTC’s Bureau of Economics, 58 Rev. Indus. Org. 33 (2021) Carl Shapiro & Howard Shelanski, Judicial Response to the 2010 Horizontal Merger Guidelines, 58 Rev. Indus. Org. 51 (2021) Dennis W. Carlton & Mark A. Israel, Effects of the 2010 Horizontal Merger Guidelines on Merger Review: Based on Ten Years of Practical Experience, 58 Rev. Indus. Org. 213 (2021) ± Carl Shapiro, The 2010 Horizontal Merger Guidelines: From Hedgehog to Fox in Forty Years, 77 Antitrust 701 (2010). Jonathan Kanter, Ass't Att'y Gen. Antitrust Div., U.S. Dep't of Justice, Respecting the Antitrust Laws and Reflecting Market Realities, Prepared Remarks Before the Georgetown Antitrust Law Symposium, Washington, DC (Sept. 13, 2022) Lina M. Khan, Chair. Fed. Trade Comm'n, Remarks Prepared for Delivery at the Fordham Annual Conference on International Antitrust Law & Policy, New York, NY (Sept. 16, 2022) ± Oversight of Federal Enforcement of the Antitrust Laws, Hearing before the Subcomm. on Competition Policy, Antitrust, and Consumer Rights of the S. Comm. on the Judiciary (Sept. 20, 2022) (video) Jonathan Kanter. Ass't Att'y Gen., Antitrust Div., U.S. Dep't of Justice (prepared statement) 2010 Merger Guidelines revision project Press Release, U.S. Dept. of Justice & Fed. Trade Comm'n, Justice Department and Federal Trade Commission Seek to Strengthen Enforcement Against Illegal Mergers (Jan. 18, 2022) U.S. Dept. of Justice & Fed. Trade Comm'n, Request for Information on Merger Enforcement (Jan. 18. 2022) ± Comments submitted, Regulations.gov (searchable web site with links to all comments) ± Thurman Arnold Project. Yale Sch. Mgmt., Merger Guidelines (web site cataloging significant comments and providing links) |
Unit 3 |
Some Merger Antitrust History |
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Class 3 |
Tuesday, September 6 |
A Brief History of Antitrust Law (class notes) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
Commentary ± Herbert Hovenkamp, The Slogans and Goals of Antitrust Law (June 14, 2022). Dale Collins, Antitrust on the Brink: The Calls for Radical Reform, Presentation to the Antitrust Law Association (Sept. 16, 2021) (slides) Christine S. Wilson, Comm'r, Fed. Trade Comm'n, The Neo-Brandeisian Revolution: Unforced Errors and the Diminution of the FTC, Prepared Remarks for the ABA Antitrust Law Section’s 2021 Fall Forum (Nov. 9, 2021) Alvaro M. Bedoya, Fed. Trade Comm'n, Returning to Fairness, Prepared Remarks for the Institute for Local Self-Reliance & the Open Markets Institute Midwest Forum on Fair Markets: What the New Antimonopoly Vision Means for Main Street, Minneapolis, MN (Sept. 22, 2022) (video) (the ± full video of the Midwest Forum starts around 2:28:30) ± Carl Shapiro, Antitrust in a Time of Populism, 61 Int'l J. Indus. Org. 714 (2018).
Withdrawal of FTC 2015 Section 5 Policy Statement Fed. Trade Comm'n, Statement of Enforcement Principles Regarding “Unfair Methods of Competition” Under Section 5 of the FTC Act (2015) FTC video of July 1, 2021, open meeting (excerpts of Section 5 Policy Statement discussion) NB: This is a very large file that needs to be downloaded before it can be played. Alternatively, go to the complete streaming version on the FTC web page, listen to the introduction up to the first issue and then skip to around 43:20 Congressional testimony Oversight of Federal Enforcement of the Antitrust Laws: Hearing Before the Subcomm. on Competition Policy, Antitrust & Consumer Rights of the S. Comm. on the Judiciary, 117th Cong. (Sept. 20, 2022) (statement of the Federal Trade Commission) Dissenting Statement of Commissioners Noah Joshua Phillips and Christine S. Wilson, Federal Trade Commission (Sept. 20, 2022) 2022 FTC Section 5 Policy Statement Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the Federal Trade Commission Act (Nov. 10, 2022) (3-1 vote) Press Release, Fed. Trade Comm'n, FTC Restores Rigorous Enforcement of Law Banning Unfair Methods of Competition (Nov. 10, 2022) Statement of Chair Lina M. Khan Joined by Commissioner Rebecca Kelly Slaughter and Commissioner Alvaro M. Bedoya (Nov. 10, 2022) Statement of Commissioner Alvaro M. Bedoya, Joined by Chair Lina M. Khan and Commissioner Rebecca Kelly Slaughter (Nov. 10, 2022) Dissenting Statement of Commissioner Christine S. Wilson (Nov. 10, 2022) Commissioner Wilson's resignation op-ed ± Christine Wilson, Why I’m Resigning as an FTC Commissioner, Wall St. J., Feb. 14, 2023. |
Unit 4 |
The DOJ/FTC Merger Review Process |
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Class 4 |
Thursday, September 8 |
The DOJ/FTC Merger Review Process (class notes)
Optional: Albertsons/Safeway case study (complete)
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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) 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)--pending in the House) Second request investigations DOJ Model Second Request (Apr. 2022) FTC Model Second Request (Oct. 2021) Model timing agreements DOJ Model Timing Agreement (July 2022) FTC Model Timing Agreement (Feb. 2019) 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) Imposing costs on deals at the FTC Bryan Koenig, FTC's Noah Phillips Reflects on Tenure At Changing Agency, Competition Law 360 (Sept. 23, 2021) (excerpt on early termination and the FTC's imposition of costs to discourage deals)
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) |
Unit 5 |
Merger Antitrust Settlements |
For additional supplemental materials, see 13. DOJ/FTC Merger Review and Settlement Procedures in AppliedAntitrust.com |
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Class 5 |
Tuesday, September 13 Settlements
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Unit 5. Merger Antitrust Settlements (class notes) There is no homework assignment for this class
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Case studies 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) Other materials Jonathan M. Jacobson, Issues in Antitrust Consent Decrees, Presented to the Department of Justice Antitrust Division (Apr. 26, 2018) William J. Donovan & Breck P. McAllister, Consent Decrees in the Enforcement of Federal Anti-Trust Laws, 46 Harv. L. Rev. 885 (1933) (for some early history of the use of consent decrees in antitrust cases) |
Unit 6 |
Merger Antitrust Litigation |
For additional supplemental materials, see 14. Merger Antitrust Litigation in AppliedAntitrust.com |
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Class 6 |
Thursday, September 15 Litigating merger antitrust cases
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Unit 6. Merger Antitrust Litigation (class notes) There is no homework assignment for this class |
Case study The Course of Litigation: EnergySolutions’ Acquisition of Waste Control Specialists (Nov. 16, 2016) Commentary ± Planet Money, Episode 438: Mavericks, Monopolies and Beer (Feb. 23, 2013) (ABI/Grupo Modelo) |
Unit 7 |
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 20 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) |
Class 8 |
Thursday, September 22 Antitrust considerations and the merger agreement The bidding war with Avis |
Allocating Antitrust Risk in Merger Agreements (class notes)
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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) |
Unit 8 |
Competition Economics |
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Class 9 |
Tuesday, September 27 Part 1. Demand, Costs, and
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Competition Economics Part 1 (class notes) There are no reading materials for this class
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Studies ± The Merger Working Group, International Competition Network, 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 Commentary 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
Really, really optional: If you want to understand derivatives and would like a quick introduction, see the following YouTube videos: Derivatives... What? (on the theory of derivatives) Derivatives... How? (on calculating the derivative--first 6.5 minutes is sufficient) |
Thursday, September 29 |
NO CLASS |
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Class 10 |
Tuesday, October 4 Part 2. Markets and Market Equilibrium Substitutes, complements, and elasticities Perfectly competitive markets Perfectly monopolized markets Imperfectly competitive markets
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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) |
OPTIONAL |
Wednesday, October 5 |
Optional economics review session |
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Unit 9 |
H&R Block/TaxACT |
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Class 11 |
Thursday, October 6 Analysis of the district court opinion Institutional setting Market definition: (Brown Shoe factors) Introduction to the hypothetical monopolist test |
Market Definition
Supplemental (but you may find useful): Introduction to Formal Horizontal Merger Analysis. We will covered all the materail in this deck but it will over several weeks.
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Case 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). Generally AppliedAntitrust.com, Market Definition 1 ABA Section of Antitrust Law, Antitrust Law Developments ch. 6 (9th ed. 2022) (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. ± Christine Wilson & Keith Klovers, Same Rule, Different Result: How the Narrowing of Product Markets Has Altered Substantive Antitrust Rules, 84 Antitrust L.J. 55 (2021) ± 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 May 2013), published at 57 Antitrust Bull. 915 (2012) ± Malcolm B. Coate, Market Definition is Not Alchemy (Jan. 22, 2014). 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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Tuesday, October 12 |
LEGISLATIVE MONDAY NO CLASS |
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Class 12 |
Wednesday, October 12 Analysis of the district court opinion Market definition (critical loss tests) |
Market Definition
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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) ± David T. Scheffman & Joseph J. Simons, The State of Critical Loss Analysis: Let’s Make Sure We Understand the Whole Story, Antitrust Source, Nov. 2003 ± Daniel O’Brien & Abraham Wickelgren, The State of Critical Loss Analysis: Reply to Scheffman and Simons, Antitrust Source, Mar. 2004. ± 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 |
Class 13 |
Thursday, October 13 Analysis of the district court opinion Market definition (diversion ratio tests) |
Market Definition
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Commentary ± Serge Moresi & Hans Zenger, Recapture Ratios In Merger Analysis (Oct. 29, 2017). ± 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). |
Class 14 |
Tuesday, October 18 Analysis of the district court opinion PNB presumption Ease of entry defense Coordinated effects Elimination of a "maverick" |
Unit 9 reading materials (rev. Oct. 15, 2022) Anticompetitive Effects in Horizontal Mergers Downward-Pricing Pressure Defenses
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Identifying market participants; determining market share and concentration 1 ABA Section of Antitrust Law, Antitrust Law Developments 361-71 (9th ed. 2022) Coordinated effects 1 ABA Section of Antitrust Law, Antitrust Law Developments 375-77 (9th ed. 2022) (coordinated effects). Janusz A. Ordover, Coordinated Effects, in 2 Issues In Competition Law and Policy 1359 (ABA Section of Antitrust Law 2008). Kai-Uwe Kühn, The Coordinated Effects of Mergers, in Handbook of Antitrust Economics 105 (Paolo Buccirossi ed. 2008) Miguel de la Mano, Coordinated Effects (undated) ± Simon Loertscher & Leslie M. Marx, Coordinated Effects in Merger Review, 64 J.L. & Econ. 705 (2021) (± Appendix) Robert H. Porter, Mergers and Coordinated Effects, 73 Int'l J. Indus. Org. 102583 (2020) (± slide deck) ± Natalia II Fabra & Massimo Motta, Assessing Coordinated Effcts in Merger Cases (Nov. 30, 2016), final version at Handbook of Game Theory and Industrial Organization ch. 5 (Luis C. Corchón & Marco A. Marini eds. 2018) ± Jonathan B. Baker, Mavericks, Mergers and Exclusion: Proving Coordinated Competitive Effects Under the Antitrust Laws, 77 N.Y.U.L. Rev. 135 (2002). ± William E. Kovacic Robert C. Marshall, Leslie M. Marx & Steven P. Schulenberg, Quantitative Analysis of Coordinated Effects, 76 Antitrust L.J. 397 (2009). ± Oxera, The Ties that Bind: When Is Retaliation Effective and Credible for Tacit Collusion? (May 2008) + Marc Ivaldi, Bruno Jullien, Patrick Rey, Paul Seabright & Jean Tirole, The Economics of Tacit Collusion (Final Report for DG Competition, European Commission March 2003) See Eliana Garces-Tolon, Damien Neven & Paul Seabright, The Ups and Downs of the Doctrine of Collective Dominance: Using GGame Theory for Merger Policy, in Cases in European Competition Policy: The Economic Analysis 349 (Bruce Lyons ed. 2009) Applications Nathan H. Miller, & Matthew C. Weinberg, Understanding the Price Effects of the MillerCoors Joint Venture, 85 Econometrica 1763 (2017) Nathan H. Miller, Gloria Sheu & Matthew C. Weinberg, Oligopolistic Price Leadership and Mergers: The United States Beer Industry, 111 Am. Econ. Rev. 3123 (2021) . ± Daniel Greenfeld, Bruce Kobayashi, Jeremy Sandford, Christopher Taylor & Nathan Wilson. Economics at the FTC: Quantitative Analyses of Two Chemical Manufacturing Mergers. 55 Rev. Indus. Org. 607 (2019) Criticisms Louis Kaplow, Horizontal Merger Analysis, 79 Int'l J. Indus. Org. 102714 (2021) U.S. Dept. of Justice & Fed. Trade Comm'n, Request for Information on Merger Enforcement 4 (Jan. 18. 2022) (specific requests re coordinated effects) See generally AppliedAntitrust.com, Coordinated Effects |
Class 15 |
Thursday, October 28 Analysis of the district court opinion Unilateral effects Efficiencies defense |
Unit 9 reading materials (rev. Oct. 15, 2022) 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 377-80 (9th ed. 2022) (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), final version at 58 Rev. Indus. Org. 143 (2021) Tommaso Valletti & Hans Zenger, Mergers with Differentiated Products: Where Do We Stand?, 58 Rev. Indus. Org. 179 (2021) ± 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)) Criticisms U.S. Dept. of Justice & Fed. Trade Comm'n, Request for Information on Merger Enforcement 4 (Jan. 18. 2022) (specific requests re unilateral effects) Efficiencies defense ± Maureen K. Ohlhausen & Taylor M. Owings, U.S. Chamber of Commerce, Evidence of Efficiencies in Consummated Mergers (June 1, 2023) ± 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). Opportunity costs ± Jason Fernando, Opportunity Cost Formula, Calculation, and What It Can Tell You, Investopedia.com (undated) ± Marginal Revolution University, What Is Opportunity Cost? (YouTube) ± Econclips, Opportunity Cost: The Road Not Taken (YouTube) |
Unit 10 |
U.S. Sugar/Imperial Sugar |
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Class 16 |
Tuesday, October 25 Analysis of the district court opinion Product markets Geographic markets |
Class 16 reading guidance: Read the Unit 10 reading materials and the 2010 Horizontal Merger Guidelines § 4.2 (Geographic Market Definition). Review the new section on geographic market definition in the Market Definition class notes (slides 70-88) and supply-side switching (slides 27-36) Market Definition (class notes) Review Anticompetitive Effects and Downward-Pricing Pressure Defenses class notes if needed THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS
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Commentary
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Unit 11 |
Sysco/U.S. Foods |
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Class 17 |
Thursday, October 27 Analysis of the district court opinion Cluster markets Targeted customer markets Auction theory of unilateral effects Power buyer defense |
Sysco/US Foods (class notes) Downward-Pricing Pressure Defenses (class notes) Unit 11 class slides (background) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
Commentary ± Gregory J. Werden, The Hypothetical Monopolist Test in Sysco: A Litigation Muddle Needing Analytic Clarity, 12 J. Competition L. & Econ. 341 (2016) |
Unit 12 |
Case Study Problem: Ice Cream Merger |
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Class 18 |
Tuesday, November 1
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Class 18 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. This is also a good time to work on your "boilerplate" of merger antitrust concepts and tests that you can copy into the exam answers. |
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Class 19 |
Thursday, November 3 Continue analysis of Class 18 homework assignment |
NB: There are no reading guidance, reading materials, or class notes for this unit. However, you might look at the Fountain Pen Merger Hypothetical and Instructor's Answer/Feedback Memorandum to give you another example of a horizontal merger exam hypothetical. We will not discuss this in class. This is also a good time to work on your "boilerplate" of merger antitrust concepts and tests that you can copy into the exam answers. |
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Unit 13 |
Staples/Office Depot |
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Class 20 |
Tuesday, November 8 Analysis of the district court opinion |
There are no separate class notes for this unit. Review Market Definition, Anticompetitive Effects, and Downward-Pricing Pressure Defenses class notes as needed Class 19-20 homework assignment
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Commentary on the 1996 Staples/Office Depot attempted 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). |
Unit 14 |
Potential Competition Mergers |
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Class 21 |
Thursday, November 10 Milan/Perri go Medtronic/Covidien Mallinckrodt (Questcor)/Novartis) Steris/Synergy Health Meta/Within
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Potential competition mergers (class notes) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
Additional case materials Commentary ABA Section of Antitrust Law, Antitrust Law Developments (Ninth) ch. 3(c)(1) (2022) (mergers between potential competitors) Organization for Economic Cooperation and Development, Concept of Potential Competition (OECD Competition Committee Discussion Paper 2021) The Concept of Potential Competition – Note by the United States (June 10, 2021) The Concept of Potential Competition – Note by Niamh Dunne (June 10, 2021) (on EU law) ± C. Scott Hemphill & Tim Wu, Nascent Competitors, 168 U. Penn. L. Rev. 1879 (2020) ± John M. Yun, Are We Dropping the Crystal Ball? Understanding Nascent & Potential Competition in Antitrust, 104 Marq. L. Rev. 613 (2021). ± John M. Yun, Bruce H. Kobayashi, Abbott B. Lipsky, Alexander Raskovich, and , Joshua D. Wright, Potential and Nascent Competition in Merger Review: Global Antitrust Institute Comment on the DOJ-FTC Request for Information on Merger Enforcement (George Mason Law & Economics Research Paper No. 22-16, April 21, 2022). ± A. Douglas Melamed, Mergers Involving Nascent Competition (2022) ± Disruptive Competition Project, U.S. Merger Enfrocement Experiments Could Significantly Harm Innovation and the Start-Up Ecosystem, Project DisCo.com (Nov. 15, 2022) |
Thursday, November 10
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Unit 15 |
Vertical Mergers |
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Class 22 |
Tuesday, November 15 Vertical Merger Guidelines General Electric/Avio Comcast/NBCUniversal AT&T/Time Warner |
Vertical mergers (class notes) THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS Work on the graded homework assignment
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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 ABA Section of Antitrust Law, Antitrust Law Developments (Ninth) ch. 3(c)(2) (2022) (vertical mergers) ± 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) |
Class 23 |
Tuesday, November 17 AT&T/Time Warner (con't) Coca-Cola/Coca-Cola Enterprises UnitedHealth Group/Change Healthcare |
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 Work on the graded homework assignment |
Case commentary ± 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). |
Unit 16 |
Graded Homework Assignment |
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Monday, November 21 |
GRADED HOMEWORK ASSIGNMENT DUE BY 8:00 PM |
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Class 24 |
Tuesday, November 22 |
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Unit 17 |
UnitedHealth/Change Healthcare |
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Class 25 |
Tuesday, November 29 Analysis of district court opinion |
There are no class notes for this unit THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
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Unit 18 |
Penguin Random House/Simon & Schuster |
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Class 26 |
Thursday, December 1 Analysis of the district court opinion Power buyers defense Failing firm defense |
There are no class notes for this unit. Review the Downward-Pricing Pressure Defenses class notes on power buyers and failing firms. THERE IS NO HOMEWORK ASSIGNMENT FOR THIS CLASS |
DOJ expert Demonstrative Exhibits for the Direct Testimony of Dr. Nicholas Hill (Aug. 8, 2022) |
Final Review Session (optional) |
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OPTIONAL |
Friday, December 2 |
OPTIONAL review session |
Merger Antitrust Review: Formulas and Other Reference Materials (Nov. 2, 2022) |
FINAL EXAM |
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Tuesday, December 6 (8:30 AM) – |
5-hour Instructions for the 2022 exam
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Some past exams/feedback memos 2020 Graded homework assignment: Beer Bottle Merger 2021 Graded homework assignment: Fountain Pen Merger
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