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From the catchment area to the relevant market . A model of geographic market definition based on critical loss analysis

Competition authorities throughout the EEA employ a variety of methodologies to define local geographic markets in mergers involving grocery retailers. In doing so, however, several authorities neglect the competitive constraint posed by competing stores located outside a given shop’s catchment area. We suggest an accurate, consistent, and resource-efficient approach.


Date: March 2022
Author(s): Mohamed Dahmani, Jakob Rustige, Elena Salomone
Tag(s): Lear Competition Notes , Competition Economics, critical loss, Local competition, relevant geographic market