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Improving Economic Analysis in Merger Guidelines

Louis Kaplow

Journal of Economic Perspectives2025https://doi.org/10.1257/jep.20241413article
AJG 4ABDC A*
Weight
0.46

Abstract

Merger review should reflect basic precepts of decision analysis, best practices in industrial organization economics, and teachings from related fields. Unfortunately, the analytical methods in modern merger guidelines fall short. Protocols violate standard prescriptions for information collection and decision-making, rely on a market definition paradigm that deviates significantly from core models of competitive interaction, fail to leverage central advances in understanding the efficiency consequences of mergers, and contravene or ignore fundamental dynamics relating to entry. This article elaborates correct analysis and contrasts it with that embodied in modern merger guidelines generally employed throughout the developed world, including the 2023 Merger Guidelines revision in the United States.

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https://doi.org/https://doi.org/10.1257/jep.20241413

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@article{louis2025,
  title        = {{Improving Economic Analysis in Merger Guidelines}},
  author       = {Louis Kaplow},
  journal      = {Journal of Economic Perspectives},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1257/jep.20241413},
}

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Improving Economic Analysis in Merger Guidelines

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Evidence weight

0.46

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.37 × 0.4 = 0.15
M · momentum0.60 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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