Answer the following question by reviewing the following:
Question 1) What were the alternative methods used by the FTC and the merging firms to determine whether or not an Office Depot and a Staples outlet were in the same geographical market?
Question 2) How did this differentiation in geographical market measurement affect the pricing behavior estimated by the FTC and by the merging firms? What is the economic term we commonly use for "price sensitive" as used in the paper?
Question 3) Which of the two studies do you find more compelling? Would you allow the merger? Has your company been involved in a similar court injunction (if no, choose a similar example outside your firm)? Identify the case and how it is similar.
Econometric Analysis in FTC versus STAPLES
Prepared Remarks of JONATHAN B. BAKER(1)
Director, Bureau of Economics
FEDERAL TRADE COMMISSION
Before
American Bar Association's Antitrust Section
Economics Committee
Willard Hotel
July 18, l997
Revised: March 31, 1998