IN process: New Materials will be posted as PREPARED
aLL MATERIALS RE SUBJECT TO CHANGE OVER THE SUMMER
Dale Collins
Georgetown University Law Center
NB: "±" indicates that the hyperlink will take you to another site.
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 (revised July 27, 2025)
Class schedule 0.6 (subject to revision through mid-August)
Cumulative class slides deck
2023 DOJ/FTC Merger Guidelines (rev. Dec. 18, 2023) (FTC news release)
2020 DOJ/FTC Vertical Merger Guidelines (June 30, 2020; FTC withdrawal Sept. 15, 2021) (FTC news release)
2010 DOJ/FTC Horizontal Merger Guidelines (rev. Aug. 19, 2010; superseded Dec. 18, 2023) (FTC news release)
1992 DOJ/FTC Horizontal Merger Guidelines (rev. Apr. 2, 1992; superseded Aug. 19, 2010) (DOJ news release)
1984 DOJ Merger Guidelines (rev. June 29, 1984, superseded Apr. 2, 1992)
1982 DOJ Merger Guidelines (rev. June 14, 1982;
superseded June 29, 1984)
1982 FTC Statement Concerning Horizontal Mergers (June 14, 1982)
Required Reading
Comments and Optional Reading
Unit 1
TransDigm/Takata
Class 1
Tuesday, August 26
Introduction to course
TransDigm/Takata
Introduction and "Rules of the Road" Memorandum (revised July 27, 2025)
Class schedule (subject to revision through mid-August)
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)
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)
Class 2
Thursday, August 28
Continue TransDigm/Takata case review
Remedies/settlements
Predicting merger antitrust outcomes
Class 2 reading guidance
Unit 1B. Merger Antitrust Divestiture Solutions in Remedies and Settlements (class notes)
Unit 1C. Predicting Merger Antitrust Outcomes (class notes)
Class 2 homework assignment (optional in the first week)
Optional: Albertsons/Safeway case study (complete)
NB: There is no need for you to look at this case study in order to do the homework. It is here only if you have some interest in learning more about the transaction.
DOJ/FTC 2010 Horizontal Merger Guidelines (skim)
Enforcement actions:
Fed. Trade Comm’n, Accomplishments: June 2021–January 2025 (Jan. 19, 2025)
Supplemental materials: Remedies/settlements
Merger Antitrust Settlements: Advanced Topics and Agency Practice (notes)
Use in conjunction with
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 Khan, Chair, Fed. Trade Comm'n (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)
Unit 2
Sanford Health/Mid Dakota Clinic
Class 3
Tuesday, September 2
Review of opinion
Facts
Claims
FTC litigation procedure
Market definition
Class 3 reading guidance
Unit 2 reading materials
Unit 2A. Merger Antitrust Litigation (class notes)
DOJ/FTC 2010 Horizontal Merger Guidelines
Class 3 homework assignment
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)
Twombly/Iqbal
Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007)
Ashcroft v. Iqbal, 556 U.S. 662 (2009)
Market definiton
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)
Class 4
Thursday, September 4
Market definition (cont.)
Anticompetitive effects
Class 4 reading guidance
Unit 2 reading materials
Unit 2B. Introduction to Market Definition (class notes)
Class 4 homework assignment
Class 5
Tuesday, September 9
Anticompetitive effects (cont.)
Defenses
Class 5 reading guidance
Unit 2 reading materials
Unit 2C. Introduction to Anticompetitive Effects and Defenses
(class notes)
Class 5 homework assignment
Unit 3
Hertz/Dollar Thrifty
Class 6
Thursday, September 11
The 2010 Hertz/Dollar Thrifty deal
Investment banking
There are no class notes for this class
Class 6 homework assignment
I encourage you to work in groups on this assignment
YouTube videos
Present value of a perpetuity (perpetual annuity)
Class 7
Tuesday, September 16
Antitrust risk-shifting in the merger agreement
The bidding war with Avis
FTC review and settlement
Aftermath
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.
Unit 4
H&R Block/TaxACT
Class 8
Thursday, September 18
Analysis of the district court opinion
Institutional setting
Market definition
Brown Shoe factors
Hypothetical monopolist test
Critical loss tests
Class 8 reading guidance
Unit 4 reading materials
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)
Class 9
Tuesday, September 23
Analysis of the district court opinion
Market definition (cont.)
Critical loss tests
Diversion ratio recapture tests
Class 12 reading guidance
Unit 9 reading materials
Market Definition (class notes)
Class 9 homework assignment
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)
Class 10
Thursday, September 25
Analysis of the district court opinion
PNB presumption
Ease of entry defense
Coordinated effects
Elimination of a "maverick"
Class 11 reading guidance
Unit 4 reading materials
Anticompetitive Effects in Horizontal Mergers
Downward-Pricing Pressure Defenses
Class 10 homework assignment
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
Class 11
Tuesday, September 30
Analysis of the district court opinion
Recapture unilateral effects
Efficiencies defense
Class 11 reading guidance
Unit 4 reading materials
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.
NB: There will be no instructor's answer for this assignment
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)
Unit 5
U.S. Sugar/Imperial Sugar
Class 12
Thursday, October 2
Analysis of the district court opinion
Product markets
Geographic markets
Class 12 reading guidance
Unit 5 reading materials
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
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
Unit 6
Case Study Problem: Ice Cream Merger
Class 13
Tuesday, October 7
Review of the Class 18 homework assignment
Class 13 homework assignment (ungraded practice exam problem)
Submit by email by 5:00 pm on Monday, October 6
NOTE THAT THE RETURN DATE IS THE DAY BEFORE CLASS!
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.
Class 14
Thursday, October 9
Continue analysis of Class 18 homework assignment
Address some "loose ends"
Class 14 reading guidance ("Loose ends")
Unit 6 reading materials
Downward-Pricing Pressure Defenses
Class 14 homework assignment.[RUBRIC]
Tuesday, October 14
LEGISLATIVE MONDAY
NO CLASS
Unit 7
Kroger/Albertsons
Class 15
Thursday, October 16
Unit 8
Staples/Office Depot
Class 16
Tuesday, October 21
Analysis of the district court opinion
Class 16 reading guidance
Unit 8 reading materials
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)
Unit 9
Sysco/U.S. Foods
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 17 reading guidance
Class slides 1-19 (review before class)
Unit 9 reading materials
Sysco/US Foods (class notes)
Downward-Pricing Pressure Defenses
Class 17 homework assignment
Commentary
± Gregory J. Werden, The Hypothetical Monopolist Test in Sysco: A Litigation Muddle Needing Analytic Clarity, 12 J. Competition L. & Econ. 341 (2016)
Unit 10
Potential Competition Mergers
Class 18
Tuesday, October 28
Milan/Perrigo
Medtronic/Covidien
Mallinckrodt (Questcor)/Novartis)
Steris/Synergy Health
Facebook/Instagram/WhatsApp
Class 18 reading guidance
Unit 10 reading materials
Potential competition mergers (class notes)
Class 18 homework assignment
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).
Unit 11
Microsoft/Activision
Class 19
Thursday, October 30
Analysis of the district court opinion
Class 19 reading guidance
Unit 11 reading materials
Class 19 homework assignment
Unit 12
Vertical Mergers
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
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)
NB: The statement does not withdraw the DOJ from the 2020 Vertical Merger Guidelines
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)
Class 21
Thursday, November 6
AT&T/Time Warner (cont.)
Class 21 reading guidance
Unit 12 reading materials
Vertical mergers (class notes)
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)
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)
Unit 13
UnitedHealth/Change Healthcare
Class 23
Thursday, November 13
Analysis of district court opinion
Class 23 reading guidance
Unit 13 reading materials
Class 23 homework assignment
European Commission Press Release IP/23/5990, Commission sends Amazon Statement of Objections over proposed acquisition of iRobot (Nov. 27, 2023).
Unit 14
Meta/Within
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
Unit 15
Sealy Tempur/Mattress Firm
Class 25
Thursday, November 20
Analysis of district court opinion
Class 24 reading guidance
Unit 14 reading materials
Work on Class 26 homework assignment
Unit 16
Homework Case Study: Mattress Firm
Class 26
Tuesday, November 25
Analysis of homework assignment
Final Review Session (optional)
OPTIONAL
REVIEW
Thursday, November 27
OPTIONAL review session
FINAL EXAM
Thursday, December 4 (8:30 AM) –
Friday, December 12 (6:30 PM)
[Times to be confirmed]
5-hour
Open book
Take home
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.