Journal of Competition Law and Economics Advance Access originally published online on February 8, 2009
Journal of Competition Law and Economics 2009 5(3):563-569; doi:10.1093/joclec/nhp001
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AN EXACT ARITHMETIC SSNIP TEST FOR ASYMMETRIC PRODUCTS
Correspondence: E-mail: oystein.daljord{at}nhh.no
JEL: L49
The standard application of critical loss analysis to delineate markets is shown to be incorrect when products are asymmetric. A simple delineating criterion is derived that accounts for asymmetries between products without imposing equilibrium conditions or any specific demand structure.
* Norwegian School of Economics and Business Administration. Thanks to Malcolm Coate, Tommy Gabrielsen, and Lars Sørgard for useful comments.