Entry analysis under the 1992 horizontal merger guidelines
Article Abstract:
The 1992 horizontal merger guidelines give a more sophisticated framework for analyzing the role of entry and to what degree it would detract from the anticompetitive effects of a merger than the 1984 guidelines. The new guidelines differentiate between 'committed' and 'uncommitted' entry. Uncommitted firms enter a market in response to a short-term chance for profit; committed firms enter for the long term. Short-term entry will probably not be profitable if the sunk costs could not be recouped in one year and such a firm would not qualify as an uncommitted entrant.
Publication Name: Antitrust Law Journal
Subject: Law
ISSN: 0003-6056
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Merger analysis in the '90s: the guidelines and beyond - overview
Article Abstract:
The 1992 horizontal merger guidelines have both pros and cons. The pros are the slightly increased sympathy for the efficiency defense, the new section on single-firm market power and its anti-competitive potential, and the more detailed definition of entry. The cons are the overly cautious changes in relevant market analysis, the concept of 'sunk costs' which may make supply substitution or geographic diversion more difficult to use as a defense to a merger, and the added precondition for the failing company defense.
Publication Name: Antitrust Law Journal
Subject: Law
ISSN: 0003-6056
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Perspectives on the 1992 U.S. government horizontal merger guidelines
Article Abstract:
The goal of the 1992 horizontal merger guidelines is to identify mergers with the potential for creating or augmenting market power. They follow the 1982 guidelines in the view that market concentration is the most important factor in assessing the competitive effects of a merger and that high concentration is more worrisome than low. The new guidelines describe in greater detail how a merger could result in higher prices or other anti-competitive practices.
Publication Name: Antitrust Law Journal
Subject: Law
ISSN: 0003-6056
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Can fiduciaries avoid liability under environmental law? Owning assets in trust results in tax and nontax benefits
- Abstracts: Refining the law on assignment of rents. Assignments: unresolved issues remain. Assignments of leases and rents at issue
- Abstracts: GRATs, GRUTs, and GRITs after the final regulations. GRITS, GRATS, and GRUTS present tax savings opportunities
- Abstracts: The waiting at the (patent) bar is over - the Supreme Court decides Hilton Davis. Do the means justify the end - a matter of Bond, Bowles, the office and 35 U.S.C. s. 112, paragraph 6
- Abstracts: Professors charge that bar exam in Louisiana is racially biased. Transition lawyers scrutinized; law professors prominent, but some say they lack exposure to business world