THE CHURCH REPORT'S ANALYSIS OF VERTICAL AND CONGLOMERATE MERGERS: A REPLY TO COOPER, FROEB, O'BRIEN, AND VITA
I respond to concerns raised by James Cooper, Luke Froeb, Dan O'Brien, and Michael Vita regarding the analysis of vertical and conglomerate mergers contained in my report to the European Commission. I address their arguments that the raising rivals' costs literature does not support an aggressive stance on vertical mergers; that market power is a necessary, but not a sufficient, condition for a non-horizontal merger to raise antitrust concerns; and that efficiencies intrinsic to a non-horizontal merger should be treated in the second step of the proposed structured rule of reason framework.
* Professor of Economics, University of Calgary. Email: jrchurch{at}ucalgary.ca.