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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 2025 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. Introduction and "Rules of the Road" Memorandum (rev. Aug. 10, 2025) 2023 DOJ/FTC Merger Guidelines (rev. Dec. 18, 2023) (FTC news release)
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Required Reading |
Comments and Optional Reading |
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Unit 1 |
TransDigm/Takata |
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Class 1 |
Tuesday, August 26 Introduction to course
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Introduction and "Rules of the Road" Memorandum (revised Aug. 10, 2025) Unit 1A. Institutional Background (class notes) Class 1 homework assignment (optional in the first week) DOJ/FTC 2023 Merger Guidelines (read pp 1-4--skim the rest)
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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 Consumer welfare ± Stigler Center, Defining the Consumer Welfare Standard (Apr. 20, 2023) ± Douglas H. Ginsburg, Wither the Consumer Welfare Standard?, 46 Harv. JL & Pub. Pol'y 69 (2023) ± ABA Section of Antitrust Law, Is Consumer Welfare In Hot Water? (Sep't 9, 2022) (YouTube) (transcript) Alternative goals of antitrust law ± Eric A. Posner, Market Power, Not Consumer Welfare: A Return to the Foundations of Merger Law (Feb. 18, 2023). The 2023 Merger Guidelines ± Herbert Hovenkamp, The 2023 Merger Guidelines: Law, Fact, and Method, 65 Rev. Indus. Org. 39 (2024) ± Steven C. Salop, The 2023 Merger Guidelines: A Post-Chicago and Neo-Brandeisian Integration, 65 Rev. Indus. Org. 79 (2024) ± Dennis W. Carlton, The 2023 Merger Guidelines: A Critical Assessment, 65 Rev. Indus. Org. 129 (2024) ± Carl Shapiro, Evolution of the Merger Guidelines: Is This Fox Too Clever by Half?, 65 Rev. Indus. Org. 147 (2024) ± Michael Salinger, The 2023 Merger Guidelines and The Role of Economics, 65 Rev. Indus. Org. 243 (2024) |
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Class 2 |
Thursday, August 28 Continue TransDigm/Takata case review Remedies/settlements Predicting merger antitrust outcomes
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Unit 1B. Merger Antitrust Divestiture Solutions in Remedies and Settlements (class notes) Class 2 homework assignment (optional in the first week) Optional: Albertsons/Safeway case study (complete)
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Supplemental materials: Remedies/settlements Merger Antitrust Settlements: Advanced Topics and Agency Practice (supplemental class notes) Enforcement actions: Fed. Trade Comm’n, Accomplishments: June 2021–January 2025 (Jan. 19, 2025) Changes in antitrust enforcement policy ± Susan Athey & Aviv Nevo, DOJ and FTC Chief Economists Explain the Changes to the 2023 Merger Guidelines, ProMarket.org (Dec. 19, 2023) Lina M. Khan, Chair. Fed. Trade Comm'n, Remarks As Prepared for Delivery Economic Club of New York, New York, NY (July 24, 2023), ± 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) 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) 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) Noah Joshua Phillips, Comm'nr, Fed. Trade Comm'n, Disparate Impact: Winners And Losers From The New M&A Policy, Prepared Remarks Before the Eighth Annual Berkeley Spring Forum on M&A and the Boardroom, San Francisco, CA (Apr. 27, 2022) ± Jeffrey T. Macher, John W. Mayo, David Sappington & Mark Whitener, The Evolution of Judicial Standards: Evidence from Litigated Merger Trials (Georgetown McDonough School of Business Research Paper No. 3809174, June 5, 2022). Logan Billman & Steven C. Salop, Merger Enforcement Statistics: 2001-2020 (Nov. 4, 2022) The 2010 Horizontal Merger Guidelines Evolution of the Merger Guidelines (not yet updated to include the 2023 Draft DOJ/FTC Draft Merger Guidelines) ± Carl Shapiro & Howard Shelanski, Judicial Response to the 2010 Horizontal Merger Guidelines, 58 Rev. Indus. Org. 51 (2021) ± Joseph Farrell & Carl Shapiro, The 2010 Horizontal Merger Guidelines After 10 Years, 58 Rev. Indus. Org. 1 (2021) ± Carl Shapiro, The 2010 Horizontal Merger Guidelines: From Hedgehog to Fox in Forty Years, 77 Antitrust 701 (2010). 2022-23 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) Press Release, Fed. Trade Comm'n, FTC and DOJ Seek Comment on Draft Merger Guidelines (July 19, 2023) Press Release, U.S. Dep't of Justice, Justice Department and FTC Seek Comment on Draft Merger Guidelines (July 19, 2023) U.S. Dep’t of Justice & Fed. Trade Comm’n, Draft Merger Guidelines (July 19, 2023) U.S. Dep’t of Justice & Fed. Trade Comm’n, Fact Sheet–2023 Draft Merger Guidelines for Public Comment (July 19, 2023) |
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Unit 2 |
Sanford Health/Mid Dakota Clinic |
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Class 3 |
Tuesday, September 2 Review of opinion Facts
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Unit 2A. Merger Antitrust Litigation (class notes) |
Sanford Health/Mid Dakota Clinic 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) Unit 2 Supplemental materials Elasticities, Cross-Elasticities, and Diversion Ratios (supplemental class notes) Cross-elasticities and elasticities (YouTube videos) Marginal Revolution University, Elasticity of Demand Marginal Revolution University, Calculating the Elasticity of Demand Twombly/Iqbal Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) Ashcroft v. Iqbal, 556 U.S. 662 (2009) Market definitIon 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. ± Herbert Hovenkamp, Antimonopoly Antitrust Metrics (2024) ± Herbert Hovenkamp, Antitrust Market Definition: The Hypothetical Monopolist and Brown Shoe (June 10, 2024) ± 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) ± Gregory J. Werden, The History of Antitrust Market Delineation, 76 Marquette L. Rev. 123 (1992). YouTube The Global Antitrust Institute, Market Definition (general introduction) |
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Class 4 |
Thursday, September 4 Market definition (cont.) |
Class 4 reading guidance Unit 2B. Introduction to Market Definition (class notes) Class 4 homework assignment |
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Class 5 |
Tuesday, September 9 Anticompetitive effects (cont.) |
Class 5 reading guidance Unit 2C. Introduction to Anticompetitive Effects and Defenses Class 5 homework assignment |
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Unit 3 |
Hertz/Dollar Thrifty |
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Class 6 |
Thursday, September 11 The 2010 Hertz/Dollar Thrifty deal
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There are no class notes for this class Class 6 homework assignment
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YouTube videos Present value of a perpetuity (perpetual annuity) |
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Class 7 |
Tuesday, September 16 Antitrust risk-shifting in the merger agreement The bidding war with Avis |
Allocating Antitrust Risk in Merger Agreements (class notes) |
Risk-shifting in Hertz/Dollar Thrifty Risk-shifting in Hertz/Dollar Thrifty (optional class notes) Risk-shifting generally For a collection of now somewhat dated antitrust-related provisions appearing in merger agreements, see Dale Collins, Sample Antitrust-Related Provisions in M&A Agreements, AntitrustUnpacked.com (July 2, 2018) ± Scott Sher, Brendan Coffman & Alexandra Keck, Risk Allocation in Merger Agreements in an Era of Increased Enforcement (Oct. 23, 2020) ± Gail F. Levine, Martha E. McGarry, Andrew J. Noreuil, Camila Panama & William H. Stallings, Mayer Brown, M&A Lawyers Adapt to New Era of Antitrust Enforcement: How Contractual Provisions Are Evolving (Jan. 2023). ± Richard Hall & Maurio A. Fiore, Cravath, Swaine & Moore LLP, U.S. Regulatory Merger Control Regimes Negotiating with Deal Delays in Mind (2023). ± Stephen Fraidin, Joel Mitnick, & Ross Steinberg, Cadwalader, Wickersham & Taft LLP, Hell or High Water Provisions in Merger Agreements: A Practical Approach (May 25, 2022) ± Quinn Emanuel Urquhart & Sullivan, LLP, “Hell Or High Water” Clauses in Merger & Acquisition Agreements (Aug. 19, 2022) + Dale Collins, Shearman & Sterling LLP, Antitrust Reverse Termination Fees—2020 Q3 Update (Dec. 28, 2020) (data set). 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) The Hertz/Avis Budget/Dollar Thrifty bidding war 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. |
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Unit 4 |
H&R Block/TaxACT |
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Class 8 |
Thursday, September 18 Analysis of the district court opinion Institutional setting Market definition Brown Shoe factors Hypothetical monopolist test Critical loss tests
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Class 8 reading guidance Market Definition (class notes) Class 8 homework assignment |
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). ± 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. Generally ± 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). Criticism Louis Kaplow, The 2023 Merger Guidelines and Market Definition: Doubling Down or Folding?, 65 Rev. Ind. Organ. 7 (2024) ± 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) Structure-Conduct-Performance paradigm Matthew T. Panhans, The Rise, Fall, and Legacy of the Structure-Conduct-Performance Paradigm (Jan. 2023). William E. Kovacic & Carl Shapiro, Antitrust Policy: A Century of Economic and Legal Thinking, 14 J. Econ. Perspectives 43 (2000).
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) |
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Class 9 |
Tuesday, September 23 Analysis of the district court opinion Market definition (cont.) Critical loss tests Diversion ratio recapture tests |
Class 9 reading guidance Market Definition (class notes) Class 9 homework assignment
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Diversion ratio tests ± 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). ± Oxera, Diversion Ratios: Why Does It Matter Where Customers Go If a Shop Is Closed? (Feb. 2009) ± Howard Chang, Diversion Ratios (2012) (YouTube) Y. Jeff Qiu, Masayuki Sawada & Gloria Sheu, Win/Loss Data and Consumer Switching Costs: Measuring Diversion Ratios and the Impact of Mergers, 72 J. Indus. Econ. 327 (2024) Adriaan ten Kate Sr. & Gunnar Niels, The Diversion Story: Resolving the Ambiguities Surrounding the Concept of Diversion Ratio, 10 J. Competition L. & Econ. 361 (2014). ± Christopher Conlon & Julie Holland Mortimer, The Role of Diversion Ratios and Surveys in Horizontal Mergers (2022). Christopher Conlon & Julie Holland Mortimer, Empirical Properties of Diversion Ratios, 52 RAND J. Econ. 693 (2021). Jeff Qiu, Masayuki Sawada & Gloria Sheu, Win/Loss Data and Consumer Switching Costs: Measuring Diversion Ratios and the Impact of Mergers, 72 J. Indus. Econ. 327 (2024). Lars Mathiesen, Øivind Anti Nilsen & Lars Sørgard, Merger Simulations with Observed Diversion Ratios, 31 Int'l Rev. L. & Econ. 83 (2011) (± working paper)
Expert economic witnesses ± Brian Rafkin & Blair Kuykendall, Antitrust Cancel Culture: Do Economic Experts Really Cancel Each Other Out in Merger Litigation?, Antitrust, Spring 2021, at 55. Office of the Inspector General, Fed. Trade Comm'n, OIG Report No. A-20-03, Audit of Federal Trade Commission Expert Witness Services (Nov. 14, 2019) |
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Class 10 |
Thursday, September 25 Analysis of the district court opinion PNB presumption |
Class 10 reading guidance Anticompetitive Effects in Horizontal Mergers Downward-Pricing Pressure Defenses Class 10 homework assignment
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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) Concentration thresholds + Volker Nocke & Michael D. Whinston, Concentration Thresholds for Horizontal Mergers, 112 Am. Econ. Rev. 1915 (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). Miguel de la Mano, Coordinated Effects (undated) + John Asker & Volker Nocke, Collusion, Mergers, and Related Antitrust Issues (NBER Working Paper 29175, Aug. 2021), final version, 5 Handbook of Industrial Organization 177 (Kate Ho, Ali Hortacsu & Alessandro Lizzeri eds., 2021) + D. Daniel Sokol & Sean Sullivan, The Decline of Coordinated Effects and How to Reverse It (Mar. 35, 2023). ± 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. ___ (2020) (± slide deck) ± Natalia II Fabra & Massimo Motta, Assessing Coordinated Effects 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) 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). Price leadership ± Ryan Mansley, Nathan H. Miller, Gloria Sheu & Matthew C. Weinberg, A Price Leadership Model for Merger Analysis (May 2023), final version at 89 Int'l J. Indus. Org. 102975 (2023) 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) ± Thomas W. Hazlett & Robert Crandall, Competitive Effects of T-Mobile/Sprint: Analysis of a '4-to-3' Merger (Feb. 20, 2024). 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) Entry Peter Caradonna, Nathan Miller & Gloria Sheu, Mergers, Entry, and Consumer Welfare (Georgetown McDonough School of Business Research Paper 3537135, 2023). See generally AppliedAntitrust.com, Coordinated Effects |
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Class 11 |
Tuesday, September 30 Analysis of the district court opinion Recapture unilateral effects |
Class 11 reading guidance Anticompetitive Effects in Horizontal Mergers (class notes) Downward-Pricing Pressure Defenses (class notes) Class 11 homework assignment Advance copy of Class 13 homework assignment (ungraded practice exam problem to be posted after class) Advance copy of the Class 14 homework assignment.
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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 & Luke M. Froeb, Choosing Among Tools for Assessing Unilateral Merger Effects, 7 Eur. Competition J. 155 (2011) (± working paper) Joseph J. Simons & Malcolm B. Coate, A Comment on Choosing Among Tools for Assessing Unilateral Effects Analysis, 8 Eur. Competition J. 429 (2012) 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) ± 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 ± 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). Compensating marginal cost reductions (CMCR) ± Tommaso Valletti & Hans Zenger, Mergers with Differentiated Products: Where Do We Stand?, 58 Rev. Indus. Org. 179 (2021) Luke Froeb, Steven Tschantz & Gregory J. Werden, Pass-through Rates and the Price Effects of Mergers, 23 Int'l J. Indus. Org. 703 (2005) (± working paper) 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) |
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Unit 5 |
U.S. Sugar/Imperial Sugar |
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Class 12 |
Thursday, October 2 Analysis of the district court opinion Product markets Geographic markets |
Class slides (background only--will not be covered in class) Market Definition (class notes--especially on supply-side switching (slides 37-47) and geographic markets (slides 87-105)) Review Anticompetitive Effects and Downward-Pricing Pressure Defenses class notes if needed Continue work on Class 13 homework assignment |
Selected case materials ± Trial Exhibit [Testimony of Dr. Dov Rothman] (April 20, 2022) ± Trial Exhibit [DOJ Closing Statement] (April 21, 2022) ± Plaintiff United States of America’s Post-Trial Brief (May 6, 2022) ± Defendants' Post-Trial Brief (filed May 20, 2022; redacted version filed May 26, 2022) For other case materials (including trial transcripts), see here
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Unit 6 |
Case Study Problem: Ice Cream Merger |
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Class 13 |
Tuesday, October 7 Review of the Class 18 homework assignment |
Class 13 homework assignment (ungraded practice exam problem) For recent past exam questions, see here 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 14 |
Thursday, October 9 Continue analysis of Class 13 homework assignment Address some "loose ends"
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Class 14 reading guidance ("Loose ends") Class 13 homework assignment |
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Tuesday, October 14 |
LEGISLATIVE MONDAY NO CLASS |
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Unit 7 |
Kroger/Albertsons |
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Class 15 |
Thursday, October 16 |
Class 15 reading guidance Unit 7 reading materials Class notes Class 15 homework assignment [RUBRIC] |
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Unit 8 |
Staples/Office Depot |
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Class 16 |
Tuesday, October 21 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 16 homework assignment |
Commentary on the 2015 Staples/Office Depot attempted merger + Chris Sagers, Ill-Fated Strategy in Staples-Office Depot Deal, N.Y. Times, May 18, 2016. 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) |
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Unit 9 |
Sysco/U.S. Foods |
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Class 17 |
Thursday, October 23 Analysis of the district court opinion Cluster markets Targeted customer markets Auction theory of unilateral effects Power buyer defense |
Class slides 1-19 Sysco/US Foods (class notes) Downward-Pricing Pressure Defenses |
Commentary ± Gregory J. Werden, The Hypothetical Monopolist Test in Sysco: A Litigation Muddle Needing Analytic Clarity, 12 J. Competition L. & Econ. 341 (2016) |
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Unit 10 |
Potential Competition Mergers |
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Class 18 |
Tuesday, October 28 Milan/Perrigo Medtronic/Covidien Mallinckrodt (Questcor)/Novartis) Steris/Synergy Health Facebook/Instagram/WhatsApp
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Class 18 reading guidance Unit 10 reading materials Potential competition mergers (class notes) Class 18 homework assignment
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Additional case materials Commentary ABA Section of Antitrust Law, Antitrust Law Developments (Ninth) ch. 3(c)(1) (2022) (mergers between potential competitors) ± Herbert Hovenkamp, Potential Competition (U. of Penn. Inst for Law & Econ Research Paper No. 23-36, Aug. 16, 2023). ± Richard J. Gilbert & A. Douglas Melamed, Potential Competition and the 2023 Merger Guidelines, 65 Rev. Indus. Org. 269 (2024) ± 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 Enforcement Experiments Could Significantly Harm Innovation and the Start-Up Ecosystem, Project DisCo.com (Nov. 15, 2022) "Killer acquisitions" ± Colleen Cunningham, Florian Ederer & Song Ma, Killer Acquisitions, 129 J. Pol. Econ. 649 (2021) ± Jonathan Barnett, “Killer Acquisitions” Reexamined: Economic Hyperbole in the Age of Populist Antitrust. (March 28, 2023). ± Kristen C. Limarzi & Harry R.S. Phillips, "Killer Acquisitions,"Big Tech, and Section 2: A Solution In Search of a Problem, Competition Pol'y Int'l (May 2020). |
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Unit 11 |
Microsoft/Activision |
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Class 19 |
Thursday, October 30 Analysis of the district court opinion |
Class 19 reading guidance Unit 11 reading materials Class 19 homework assignment |
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Unit 12 |
Vertical Mergers |
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Class 20 |
Tuesday, November 4 General Electric/Avio Comcast/NBCUniversal AT&T/Time Warner |
Class 20 reading guidance Unit 12 reading materials Vertical mergers (class notes) Class 20 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 (YouTube) Luke Bessey, Managerial Economics - Double Marginalization (YouTube) Makan Delrahim, Ass't Att'y Gen', Antitrust Div., U.S. Dep't of Justice, “Harder Better Faster Stronger”: Evaluating EDM as a Defense in Vertical Mergers, Prepared Remarks Before the George Mason Law Review 22nd Annual Antitrust Symposium, Arlington, VA (Feb. 15, 2019) ± John Kwoka & Margaret Slade, Second Thoughts on Double Marginalization (Jan. 2020) ± Ugur Akgün, Cristina Caffarra, Federico Etro & Robert Stillman, On the Welfare Impact of Mergers of Complements: Raising Rivals’ Costs Versus Elimination of Double Marginalization, Economics Letters, 195, 109429 (2020) ± Philippe Choné, Laurent Linnemer & Thibaud Vergé, Double Marginalization, Market foreclosure, and Vertical Integration (Feb. 16, 2023) ± Laurent Linnemer, Doubling Back on Double Marginalization (Sept. 8, 2021), final version at 61 Rev. Indus. Org. 1 (2022) ± Fernando Luco & Guillermo Marshall, Vertical Integration with Multiproduct Firms: When Eliminating Double Marginalization May Hurt Consumers (Dec. 7, 2018) (slides) Vertical consent decrees ± Steven C. Salop, Modifying Merger Consent Decrees to Improve Merger Enforcement Policy, Antitrust, Fall 2016, at 15-20 Commentary ABA Section of Antitrust Law, Antitrust Law Developments (Ninth) ch. 3(c)(2) (2022) (vertical mergers) ± Herbert Hovenkamp, Mergers of Complements (Apr. 23, 2024) Jeffrey Church, Vertical Mergers, in 2 Issues in Competition Law and Policy 1455 (ABA Section of Antitrust Law 2008) Mark Israel & Dan O'Brien, Lessons from Foreclosure Parables: The Need to Tether Vertical Merger Analysis (Jan. 2024) ± 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) ± Marissa Beck & Fiona Scott Morton, Evaluating the Evidence on Vertical Mergers (Dec. 31, 2020), final version at 59 Rev. Indus. Org. 273 (2021) ± Jonathan B. Baker, Nancy L. Rose, Steven C. Salop & Fiona Scott Morton, Five Principles For Vertical Merger Enforcement Policy, Antitrust, Summer 2019, at 12 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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Class 21 |
Thursday, November 6 AT&T/Time Warner (cont.)
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Class 21 reading guidance Unit 12 reading materials Vertical mergers (class notes)
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Commentary on AT&T/Time Warner ± 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 L. Shampine, Retrospective Analysis of the AT&T/Time Warner Merger, 65 J.L. & Econ. S461 (2022) (± working paper) |
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Class 22 |
Tuesday, November 11 AT&T/Time Warner (cont.) Coca-Cola/Coca-Cola Enterprises |
Class 22 reading guidance Unit 12 reading materials Vertical mergers (class notes) |
Commentary Roger D. Blair & Christine P. Durrance, Illumina-GRAIL in Retrospect, 65 Rev. Indus. Org.347(2024) |
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Unit 13 |
UnitedHealth/Change Healthcare |
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Class 23 |
Thursday, November 13 Analysis of district court opinion
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Class 23 reading guidance Unit 13 reading materials Class 23 homework assignment
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European Commission Press Release IP/23/5990, Commission sends Amazon Statement of Objections over proposed acquisition of iRobot (Nov. 27, 2023). |
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Unit 14 |
Meta/Within |
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Class 24 |
Tuesday, November 18 Analysis of district court opinion |
Class 24 reading guidance Unit 14 reading materials Class 24 homework assignment Advance copy of the Class 26 homework assignment posted
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Unit 15 |
Sealy Tempur/Mattress Firm |
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Class 25 |
Thursday, November 20 Analysis of district court opinion |
Class 24 reading guidance Unit 14 reading materials Work on Class 26 homework assignment |
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Unit 16 |
Homework Case Study: Mattress Firm |
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Class 26 |
Tuesday, November 25 Analysis of homework assignment
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Final Review Session (optional) |
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OPTIONAL |
Thursday, November 27
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OPTIONAL review session |
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FINAL EXAM |
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Thursday, December 4 (8:30 AM) – |
5-hour Instructions for the 2024 exam NB: Some exams in the past have included two merger hypotheticals. This year, the exam will contain only one hypothetical. |
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