Figure 8

Merger Settlements

Case	Product	Number of Firms	HHI/Delta	Plus Factors
Georgia-Pacific/

Domtar (1996)	Gypsum board	Merger of 3rd and 4th firms in 4-to-3 market	2700/400

Homogeneous products

Inelastic demand

History of coordination

Price signaling

Information exchange
New Holland/

Case (1999)	Tractors, balers, and windrowers	Multiple 5-to- 4 and 4-to-3 markets	2885- 4460/

510-995	Facilitating practices

History of tacit coordination

Information exchange

Eliminate maverick
Earthgrains/Metz (2000)	White pan bread	Two 3-to-2 and one 4-to-3 market	3400-3800/

875-1530	Homogeneous products

Inelastic demand

Stable demand and regular purchases

Eliminate maverick

History of coordination
Alcoa/Reynolds (2000)	Smelter and chemical grade alumina

SGA: 6-to-5

CGA: 5-to-4	SGA: 1800/531

CGA: 4222/1460	Homogeneous product

Inelastic demand

History of signaling

History of coordination

Transparent information

Reynolds potential maverick

Alcoa excess capacity
Premdor/Masonite (2001)	Residential doors	3-to-2 upstream market	N/A	Increased firm homogeneity

Eliminate maverick

History of coordination
Suiza/Broughton (1999)	School milk	Multiple 3-to- 2 markets defined as single school districts	5,000/

1,667	Inelastic demand

History of coordination

Public bid markets

Multimarket contacts