Posted by Social Science Research Network
Customer-Focused Competitive Effects Analysis and the Role of Transportation Costs
By David A. Weiskopf & Robert Bourke (Compass Lexecon)
Abstract: Although using customer and supplier location data in the context of antitrust analysis is commonplace, such data are generally used for the purpose of defining the relevant geographic market and assessing the competitive effects of a merger by focusing on customer locations in terms of a suppliers’ “customer base” rather than on the locations of customers from the standpoint of their supply options. 9 We believe that the customer-focused competitive analysis described in this paper, particularly when used in conjunction with other information and analysis bearing on competitive effects (e.g., an assessment of entry barriers), can help illuminate whether a proposed merger raises concerns regarding competitive effects.
