Working Paper Series, Department of Economics, Copenhagen Business School
Niels Haldrup, Peter Møllgaard and Claus Kastberg Nielsen
Sequential versus simultaneous market
Abstract: Delineation of the relevant market forms a pivotal part of
most antitrust cases. The standard approach is sequential. First the
product market is delineated, then the geographical market is defined.
Demand and supply substitution in both the product dimension and the
geographical dimension will normally be stronger than substitution in
either dimension. By ignoring this one might decide first to define
products narrowly and then to define the geographical extent narrowly
ignoring the possibility of a diagonal substitution. These reflections are
important in the empirical delineation of product and geographical markets.
Using a unique data set for prices of Norwegian and Scottish salmon, we
propose a methodology for simultaneous market delineation and we
demonstrate that compared to a sequential approach conclusions will be
Keywords: Relevant market; econometric delineation; salmon; (follow links to similar papers)
JEL-Codes: C30; K21; L41; Q22; (follow links to similar papers)
24 pages, March 15, 2005
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom