The newest aggregate diversion proportion is the percentage of transformation lost by the A this is certainly recaptured because of the B and you may C
67 Katz Shapiro suggest focusing on whatever they name this new “aggregate diversion proportion” to indicate whether or not the flexibility regarding need for brand new candidate business is actually well enough below the firm-level demand elasticities so the applicant marketplace is, indeed, market. Assume you’ll find three products in the fresh new applicant market, A beneficial, B, and you may C, and the cost of An excellent was increased of the four percent. Look for and O’Brien Wickelgren, supra note 30, in the 184 (“We have revealed the inference generally taken regarding crucial losings study – one to large margins create a beneficial merger less likely to want to end up being anticompetitive – might be contradictory with economic idea . In our opinion, critical loss research features resulted in tremendous distress regarding the economic points one regulate firms’ prices bonuses. The strategy could have been misused oftentimes one to objections that will be contradictory with basic monetary principle keeps nearly attained a way of measuring authenticity in antitrust times.”).
Katz Shapiro, supra mention 29, during the 53-54
68 Frech step three/twenty six on 189, pointing out to Hazard Frech, supra mention 30. Discover in addition to Langenfeld Li, supra notice 31, at the 301, 313, 323-333; O’Brien Wickelgren, supra notice 29, at 162, 168-73, 177-84; Katz Shapiro, supra note 31, in the 50-51,54-55.
69 Langenfeld Li, supra notice 30, in the 323-twenty-four, 332-33. (more…)