Farrell and Shapiro (2008) have proposed a test – called the Upward Pricing Pressure (UPP) test – to evaluate potential unilateral effects of horizontal mergers. This comment shows that the UPP test – suitably reinterpreted and properly implemented – can be applied usefully also in industries where suppliers set prices through bidding competition.
Trends in competition in the United States: what does the evidence show?
Has the United States economy become less competitive in recent decades? One might think so based on a body of research that has rapidly become influential for...