The US Department of Justice and Federal Trade Commission release new Horizontal Merger Guidelines which include what amounts to a "gross upward pricing pressure index" (GUPPI)

Scoring Unilateral Effects with the GUPPI: The Approach of the New Horizontal Merger Guidelines* The US Department of Justice and the Federal Trade Commission released the 2010 Horizontal Merger Guidelines on August 19, 2010. [1] This note explains the approach set out in the 2010 Merger Guidelines to evaluate a merger’s potential for unilateral competitive effects by calculating a “gross upward pricing pressure index” or GUPPI. In general, the merger of two firms can give rise to unilateral effects because the merger may provide an incentive for the merged firm to raise the price of the products of one or both firms. [2] Before the merger, if one of the merging firms considers raising the price of its products, that firm may be constrained from doing so because it would lose a

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Authors

  • Georgetown University (Washington D.C.)
  • CRA International (Washington)
  • CRA International (Washington)

Quotation

Steven C. Salop, Serge X. Moresi, John R. Woodbury, The US Department of Justice and Federal Trade Commission release new Horizontal Merger Guidelines which include what amounts to a "gross upward pricing pressure index" (GUPPI), 19 August 2010, e-Competitions August 2010, Art. N° 87955

Visites 71

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues