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Licensed Unlicensed Requires Authentication Published by De Gruyter May 17, 2010

Understanding UPP

  • Roy J. Epstein and Daniel L Rubinfeld

Joseph Farrell and Carl Shapiro have proposed a measure of Upward Pricing Pressure (UPP) as offering a presumption of anticompetitive unilateral effects in a merger. We explain that the underlying framework (which relies on Bertrand competition) is in fact a special case of a more general merger simulation methodology. We discuss the strengths and weaknesses of the framework as a policy tool.

Published Online: 2010-5-17

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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