As a predictor of post-merger price competition, “willingness to pay” is a potentially powerful tool that federal antitrust agencies are increasingly relying on when assessing proposed hospital mergers. The agencies’ increasing reliance on the technique means that a thorough understanding of it is essential for attorneys involved in hospital merger transactions.
Response to the European Commission’s targeted consultation on revising its merger guidelines
Their recommendations include: Using simultaneous vGUPPIs to account for feedback effects between raising rivals’ costs (RRC) incentives and elimination of...