Merger Simulation Models in Competition Policy
Brussels, Belgium
20 March 2007
Hosted By: International Business Conferences (IBC)
NERA Director Dr. Mark Williams again spoke at IBC's annual conference, The Use of Economics in Competition Law, which this year was held on 19-20 March at the Meridien Hotel in Brussels. Dr. Williams presented on the second day of the conference, which was dedicated to advanced economic analysis in competition law. The focus of his presentation was merger simulation models.
Simulation models have become a standard technique in the antitrust economist's toolbox for assessing mergers and acquisitions. While theoretical models such as those of Cournot and Bertrand have been known for more than a century, the availability of richer datasets and advances in computational methods have made it possible to calibrate these theories with market data, and thus to investigate the effects of different market structures on prices and output.
Dr. Williams discussed some of the key assumptions and modeling choices in simulating mergers. Drawing from experience in actual cases, he also set out some checks and balances to ensure that the model actually fits the facts.
To contact us about this event, please click here.
