Figure 7 Litigated Cases -- Wins Case | Product | Market Structure | HHI/Delta | Plus Factors |
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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 |
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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 |
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Updated September 17, 2015