Analyzing Mergers Using Capacity Closures
Nicholas Hill, EAG 08-08, August 2008
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Abstract:
In this paper I describe a method for analyzing mergers in industries
in which it is more cost
effective to close capacity than to idle it. The method can be used
to define markets, to assess
the likelihood of competitive effects and to evaluate divestitures.
I also discuss the methods
data requirements and how it can be modified to deal with the types
of issues that often arise
during an antitrust investigation.