Tag: Bureau of Economics

Displaying 181 - 200 of 466 results.

This paper measures market dynamics within the U.S. grocery industry (defined as supermarket, supercenter and club retailers). We find that the composition of outlets changes substantially, roughly 7%, each year, and that store sizes have increased as the result of growth by...
The Federal Trade Commission today issued a Bureau of Economics staff report examining trends in the petroleum industry and how they have affected gasoline prices between 2005 and early 2011.  It concludes that while a broad range of factors influence the price of gasoline, worldwide crude oil...
The Federal Trade Commission’s staff submitted a comment to the U.S. Federal Energy Regulatory Commission providing views on how energy regulators should apply the revised Horizontal Merger Guidelines.
Recent literature has shown that an incumbent can use exclusive contracts to maintain supra-competitive prices, but only if he completely prevents a more efficient potential entrant from entering, and if the entrant is exogenously prevented from making exclusive offers. Such models...
In 2004, the Federal Trade Commission brought legal action retrospectively challenging the 2000 acquisition of Highland Park Hospital by Evanston Northwestern Healthcare in Evanston, Illinois. A major issue in the case was whether the merger had resulted in improved clinical quality...
Economists at the Federal Trade Commission (FTC) pursue the agency'’s competition and consumer protection missions. In this year'’s essay, in antitrust, we discuss the new Merger Guidelines, three exclusion cases, and R&D issues in the Thoratec/HeartWare merger and the Google/...
Workers value job security. If at least some workers value it enough, then it is efficient for at least some firms to adopt policies in which they commit (implicitly or explicitly) not to dismiss employees except for “just-cause,” as opposed to policies in which employers are free to...
The Twenty-first Amendment repealed prohibition, but granted the states broad power to regulate the distribution and sale of alcohol to consumers within their borders. Pursuant to this authority, states have established a complex web of regulations that limit the ability of beer,...
We provide the first analysis of potential competition in the generic drug industry. Our identification strategy exploits a provision of the Hatch-Waxman Act that rewards 180 days of marketing exclusivity to the first generic drug applicant against the holder of a branded drug patent...
This paper presents new evidence of asymmetric pass-through, the notion that upward cost shocks are passed through faster than downward cost shocks, in U.S. gasoline prices. Much of the extant literature comes to seemingly contradictory conclusions about the existence of an asymmetry...
Studies of gasoline prices in multiple countries have found a repeated sequence of asymmetric cycles where a sharp price increase is followed by gradual decreases. This price pattern is linked to Maskin & Tirole’s (1988) theoretical duopoly pricing game that produces a similar...
Sunoco’s 2004 acquisition of El Paso’s, New Jersey refinery and Valero’s 2005 acquisition of Premcor’s Delaware refinery significantly consolidated refinery control in the U.S. Northeast. The Federal Trade Commission investigated both transactions but challenged neither. We examine...
A use-or-lose provision requires firms to employ a certain minimum fraction of their productive capacity. Variants have been used by regulators in the airline, natural gas transmission, and electric power industries, among others.  The primary objective of these provisions is to...
Our paper contributes to the literature on the relationship between innovation and market power by considering how changes in the intensity of product market competition affect innovation when managerial compensation is a linear function of firm profits. Changes in the intensity of...
Economists at the Federal Trade Commission (FTC) support the agency’'s competition and consumer protection missions. In this year'’s essay we discuss efforts at the FTC and elsewhere to examine empirically the competitive effects of mergers. This work has ranged from subjective...
Despite being a widely used tool in merger enforcement, there have been few studies of whether antitrust divestitures are successful.  We help fill this void by conducting a study of the divestitures relating to Johnson & Johnson’s $16.6 billion acquisition of Pfizer’s consumer...
Eight years have elapsed since the Federal Trade Commission (FTC) prevented the merger of the formerly number two and number three baby food manufacturers in the U.S. Since the abandoned merger, the landscape of the baby food industry has significantly evolved. All of the major...
We provide an in-depth analysis of the price effects of two hospital mergers that occurred in the north shore suburbs of Chicago in early 2000: Evanston Northwestern Healthcare’s (ENH) purchase of Highland Park Hospital (HPH) and the merger of St. Therese Medical Center (STMC) and...
The Federal Trade Commission initiated a Hospital Merger Retrospective Project in 2002 to analyze the effects of consummated mergers.  One of the mergers studied was the 1998 acquisition by New Hanover Regional Medical Center (“New Hanover”) of Columbia Cape Fear Memorial Hospital (“...

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