FROM THE CATCHMENT AREA TO THE RELEVANT MARKET. A MODEL OF GEOGRAPHIC MARKET DEFINITION BASED ON CRITICAL LOSS ANALYSIS

The LCN and Inisght discuss the approaches adopted by competition authorities throughout the EEA to define local geographic markets in mergers involving grocery retailers, and identify some systematic flaws in these approaches. We argue that one simple rule for the definition of local geographic markets can be developed based on critical loss analysis, and that this rule is consistent with economic theory on market definition.

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