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Price Tests to Define Markets: An Application to Wholesale Gasoline in Canda

Price Tests to Define Markets: An Application to Wholesale Gasoline in Canda The concept of relevant markets is fundamental to antitrust analysis, particularly to those relating to mergers. However, defining relevant markets is sometimes difficult ot operationalize. This has triggered a substantial literature in which price tests have been used to define both economic and antitrust markets. This paper reviews some price tests and applies them in order to define relevant geographic markets in wholesale gasoline in Canada. We find that relevant geographic markets can be larger than cities but smaller than East and West Canada. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png "Journal of Industry, Competition and Trade" Springer Journals

Price Tests to Define Markets: An Application to Wholesale Gasoline in Canda

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References (13)

Publisher
Springer Journals
Copyright
Copyright © 2005 by Springer Science + Business Media, Inc.
Subject
Economics; Industrial Organization; Economic Policy; R & D/Technology Policy; European Integration; Microeconomics; International Economics
ISSN
1566-1679
eISSN
1573-7012
DOI
10.1007/s10842-005-3721-1
Publisher site
See Article on Publisher Site

Abstract

The concept of relevant markets is fundamental to antitrust analysis, particularly to those relating to mergers. However, defining relevant markets is sometimes difficult ot operationalize. This has triggered a substantial literature in which price tests have been used to define both economic and antitrust markets. This paper reviews some price tests and applies them in order to define relevant geographic markets in wholesale gasoline in Canada. We find that relevant geographic markets can be larger than cities but smaller than East and West Canada.

Journal

"Journal of Industry, Competition and Trade"Springer Journals

Published: Sep 24, 2005

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