|
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 |
|