Scandinavian Working Papers in Economics
Research Papers in Economics,
Stockholm University, Department of Economics
No 1999:7: Market Delineation and Product Differentiation
Jonas Häckner ()
Additional contact information
Jonas Häckner: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Abstract: The purpose of this study is to analyse theoretically the implications of applying the procedure for market delineation used by competitions authorities in the EU and in the US. Specifically, we investigate the circumstances under which the procedure will lead to positive relation between actual market power and the assessed degree of market dominance. Another objective is to test whether the procedure is neutral in the sense that it does not discriminate among different sources of market power. In order to address these issues, we develop an oligopoly model that allows for an arbitrary number of firms as well as for vertical an horizontal product differentiation. It is found that the correlation between actual market power and assessed market dominance is likely to be weak and that the procedure discriminates strongly among different sources of market power.
Keywords: Market delineation; Competition policy; Product Differentiation
21 pages, September 13, 1999
Questions (including download problems) about the papers in this series should be directed to Anne Jensen ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-05 17:13:48.