The Role of Economists and Economic Evidence in Merger Analysis

This work product updates Chapter 4, of the ICN Investigative Techniques Handbook for Merger Review (the Handbook), “The Role of Economics and Economic Evidence in Merger Analysis”. The Handbook was presented by the Merger Working Group (MWG) at the 2005 ICN Annual Conference in Bonn. The updated chapter is part of the MWG Project on Economic Analysis in Merger Review, a multi-year project started in 2011 with the objective of exploring common practices in areas of economic analysis in merger review in a useful manner for both economist and non-economist merger case handlers. The updated draft: (i) strengthens the content of Chapter 4 by providing more concrete guidance on the practical use of quantitative techniques in the investigation, and (ii) updates and broadens the scope of the chapter by including economic tools not mentioned in the previous version of the chapter. To redraft the chapter, the MWG co-chairs worked with a drafting team composed of the German Bundeskartellamt, the UK OFT, the Taiwan FTC, the US FTC, the Canada Competition Bureau, the Italian Competition Authority, DG Competition of the European Commission and the South Africa Competition Commission. Other MWG members, including agencies and non-governmental advisors (NGAs), provided helpful comments that strengthened the chapter. The work product was enriched by discussions at the 2012 Merger Workshop held in Bogotá and on the MWG teleseminar call series organized in the previous ICN year 2011-2012. The experience-sharing among MWG members and NGAs greatly benefited the chapter.