Merger Simulation

With merger-simulation models, it is possible to assess anticipated effects in the analysis of both horizontal and non-horizontal mergers. These analyses can offer further important reference points for the consequences of a merger, if the specific features of a market are adequately represented by the model structure. We implement these models successfully and present the results to competition authorities.

Counterfactual Analysis

A further variation of cartel-damage analysis depicts market simulation where there is a lack of comparable markets. Using industrial economic models, hypothetical competitive prices can be simulated in a particular market. At the same time, a model demonstration of the supply and demand structure of the market in question is produced. Important information is, amongst other aspects:

• Behavioural assumptions for the companies in the market
• Production and transportation costs
• Capacity restrictions
• Consumer price elasticity (company-specific own-price and cross-price elasticity, if necessary)
   

On the basis of this information, prices can be simulated across a range of different behavioural scenarios. We implement these sophisticated models and present the results to competition authorities and courts.