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Figure 7
Litigated Cases -- Wins

Case Product Market
Structure
HHI/Delta Plus Factors
FTC v. Heinz (2001) Baby food 3-to-2 5,300 Strong PNB presumption
No unique impediments
Price leadership history
Transparent sales data
Ignored econometric data
Reject efficiencies story
FTC v. Swedish Match (2000) Loose leaf
chewing tobacco
3-to-2 4,700/1500 Price leadership history
FTC v. Cardinal Health (1998) Drug wholesaling Two parallel
mergers, reducing
major firm
from 4 to 2
3,100/1600
(both
mergers)
Reject ease of entry story
Reject power buyers story
FTC v. University Health (1991) Acute care
hospitals
5-to-4 3,200/600 Entry barriers
Ability to monitor capacity expansion
Reject power buyers story


Figure 7 con't
Litigated Cases -- Losses

Parties Product
Market
Market Structure HHI/Delta Factors
Union Pacific/
Southern Pacific
(STB, 1996)
Rail service 3-to-2 N/A High fixed costs
Long-term contracts
No transparency
Large buyers
Econometric evidence
NY v. Kraft ready-to-eat
cereals
6-to-5 2,300/70 Multidimensional non-price competition
Product heterogeneity
Not a maverick
No promotion transparency
Lengthy promotion response time
US v. Archer-
Daniel-Midlands
High fructose
corn syrup
9-to-8 2,200/400 Powerful buyers
High fixed costs
Long-term contracts
No transparency
Product heterogeneity