Antitrust Economics Workshop materials

198 Pages·2017·3.58 MB·English

Fordham Competition Law Institute
ANTITRUST ECONOMICS WORKSHOP
5 September 2018 | 9:15 a.m.–4:45 p.m.
CLE Course Materials & Speaker Biographies
Fordham Law School
Skadden Conference Center | 150 West 62nd Street
New York City
Table of Contents
1. Speaker Biographies (view in document)
2. CLE Materials
Panel 1: Merger Remedies Panel 3: The AMEX Decision: What’s Next?
Salop, Steven C. Invigorating Vertical Merger Ohio et al. v. American Express Co. et al case
Enforcement. (view in document)
(view in document)
Colangelo, G. and Maggiolino, M. Applying Two-Sided
Weiskopf, D. and Pelnar, G. Bibliography Organized by Markets Theory: The Mastercard and American Express
Topic and Region: Merger Remedies Decisions.
(view in document) (view in document)
Panel 4: Structural Modeling and Antitrust: Current
Panel 2: What can we learn from Merger
and Future Applications
Retrospectives?
Neco, A. and Whinston, M. Taking the Dogma out of
Overall Findings of the Merger Retrospective Literature.
Econometrics: Structural Modeling and Credible Inference.
(view in document)
(view in document)
Kobayashi, Bruce H. Merger Retrospectives: History,
Methodology, and Inference.
(view in document)
Speakers
Michael Cragg

Principal and Chairman, The Brattle Group
Arthur Burke
(moderator)
Partner, Davis Polk & Wardwell LLP
Arthur J. Burke is a partner at Davis Polk& Wardwell. Dr. Michael I. Cragg is Principal & Chairman of The
In his capacity as a partner in the Litigation
Brattle Group. Dr. Cragg has extensive consulting,
Department in New York and Northern California, Mr.
Burke has represented clients in a variety of antitrust, research, and expert witness experience in corporate
securities, corporate governance and general litigation
finance, financial services, and valuation.
matters. In his antitrust practice, he also advises clients
on the competition law aspects of mergers and Dr. Cragg has testified in state and federal courts as
acquisitions. Mr. Burke received his BA/BS from the well as in regulatory proceedings nationwide. His
University of Pennsylvania and his JD from the expertise includes consulting on risk and financial
University of Michigan Law School. management matters with a focus on leading teams in
complex litigation.
Mary Coleman
Executive Vice President, Compass Lexecon He has assisted corporations, the U.S. Department of
(moderator) Justice, and the Internal Revenue Service in developing
economic and financial testimony in a variety of
Dr. Mary Coleman is an Executive Vice President at
finance and tax litigation. Dr. Cragg recently played a
Compass Lexecon. Dr. Coleman received her Ph.D. in
key role in the closely watched case regarding the
Economics from Stanford University. Dr. Coleman’s
government's treatment of AIG, as well as in the
consulting practice specializes in the competitive
highly-publicized Long Term Capital Management
analysis of mergers and acquisitions and joint ventures,
litigation and Eaton’s and Glaxo’s recent transfer
and antitrust litigation, including class action
pricing disputes.
certification issues. She has experience with a wide
range of industries, including consumer products, Prior to joining the firm, Dr. Cragg was a founding
retailing, distribution, food packaging, petroleum and partner of Cambridge Finance Partners, LLC where he
natural gas, chemicals, coatings, industrial gases, served as a consultant and expert witness on litigation
concrete and cement, defense industries, cases in the financial services, pharmaceutical, electric
telecommunication, publishing, newspapers, and gas, and high-tech industries. He was also formerly
agricultural products, paper products, payment a partner at Bates White and a vice president at
systems, pharmaceuticals, hospitals, physicians, Analysis Group, where he focused on antitrust,
medical devices, health care, computer hardware and intellectual property, and competition analysis.
software. She has made presentations before US and
foreign antitrust authorities and submitted expert Dr. Cragg began his career as a professor of economics
testimony in federal court. at Columbia University and UCLA’s Andersen School
of Management. He was also a consultant at RAND,
From November 2001 until March 2004, Dr. Coleman and a senior economist in the Capital Markets Section
was the Deputy Director for Antitrust in the Bureau of of the Milken Institute. His research has been
Economics of the Federal Trade Commission. In this sponsored by a range of institutions and foundations
role, Mary headed the antitrust group in the Bureau of including the NSF and NIH. Dr. Cragg currently serves
Economics and was involved in all antitrust as a co-editor of The Economists’ Voice. He received his
investigations at the FTC as well as several non- BSE from Princeton University, his MA from the
enforcement projects. She managed the economic University of British Columbia, and his Ph.D. in Finance
input into all antitrust cases and provided advice to the and Economics from Stanford University.
Bureau of Competition staff lawyers and management
as well as to the Commission.
David Evans
From May 2004 to August 2009, Mary was a
Founder, Market Platform Dynamics
Managing Director at LECG, LLC. Mary also worked at
My academic work has focused on industrial
LECG from 1993 to 2001 and was a Principal from 1999
organization, including antitrust economics, with a
to 2001. From 1990 to 1993, Dr. Coleman served as a
particular expertise in multisided platforms, digital
staff economist at the Federal Trade Commission.
economy, information technology, and payment
systems. I have authored eight books, including two
award winners, and more than one hundred articles in testified in many other trials and hearings on
these areas. I have developed and taught courses monopolization, damages, and class
related to antitrust economics, primarily for graduate certification. Additionally, Israel has served as the lead
students, judges and officials, and practitioners, and expert in front of government agencies in many high
have authored handbook chapters on various antitrust profile recent mergers including, among others,
subjects. Comcast-NBCU, American Airlines-US Airways, and
AT&T-Time Warner.
My expert work has focused on competition policy and
regulation. I have served as a testifying or consulting James Keyte
expert on many significant antitrust matters in the Director of Global Development, The Brattle Group
United States, European Union, and China. I have also (moderator)
made submissions to, and appearances before,
James Keyte is the Director of Global Development at
competition and regulatory authorities with respect to
mergers and investigations in those and other The Brattle Group. In this capacity, Mr. Keyte plays a
jurisdictions. I have worked on litigation matters for
lead role in growing Brattle’s antitrust practice and
defendants and plaintiffs, on mergers for merging
parties and intervenors, and for and in opposition to defining a new level of quality for economic consulting.
competition authorities. He is a graduate of the
His extensive practical experience, along with his deep
University of Chicago, from which he earned a BA, and
antitrust expertise, gives Brattle a competitive
MA, and a PhD, all in economics.
advantage in producing top quality expert work
product across all competition subject areas. Mr. Keyte
Mark Israel
is directly engaged in marketing, training, and quality
Senior Managing Director, Compass Lexecon
review across all of Brattle’s competition and antitrust
Mark Israel is a Senior Managing Director at Compass engagements both in the U.S. and
Lexecon. Prior to joining Compass Lexecon, he served as globally.
an Associate Professor at Northwestern University’s
Kellogg School of Management. He received his Ph.D. in Mr. Keyte previously spent more than twenty years as
Economics from Stanford University in 2001. a partner at Skadden, where he handled a wide variety
of antitrust litigation, transactions, and advisory
Israel has substantial experience applying economic
matters across numerous industries. He led high-
analysis and econometric tools to antitrust cases
profile antitrust cases involving alleged price-fixing,
including mergers, joint ventures, regulatory
monopolization, mergers, intellectual property
proceedings and litigation matters, in the U.S. and
licensing, and sports-related matters, including class
internationally. He has served as an expert for both
actions. He was also involved in a number of high-
government agencies and private parties, in cases
profile mergers, several of which involved litigation
involving industries such as telecommunications, cable
challenges by the DOJ and FTC.
television, broadband internet service, airlines, health
insurance, food distribution, railroads, shipping, Mr. Keyte is the Director of the Fordham Competition
financial markets, nuclear waste disposal, consumer Law Institute (FCLI), which he will continue to lead,
retail, and many others. Israel has written numerous and has published more than 50 articles related to
academic articles on topics including competition antitrust across a wide range of topics, including on the
economics, econometrics, merger policy, subject of expert testimony. He is an adjunct professor
telecommunications, airlines, insurance markets, and at Fordham Law School, a former editor of Antitrust
applied econometrics. His research has been published Law Journal, and currently serves as editor of Antitrust
in leading scholarly and applied journals including, Magazine. He holds a J.D. from Loyola Law School
among others, The American Economics Review, The Rand (Law Review) and a B.A. from Harvard University (cum
Journal of Economics, The Review of Industrial laude).
Organization, The Journal of Competition Law and
Economics, and The Review of Network Economics, and has
Bruce Kobayashi
been presented to business, government, and academic
Director, Bureau of Economics, Federal Trade
audiences around the world.
Commission
Israel has served as a testifying economic expert in
four merger trials in the last four years—both for the Professor of Law Bruce H. Kobayashi teaches at the
government and for private parties—and has also
Antonin Scalia Law School, George Mason University. This past summer I had my first child. As I figure out
His background in economics makes him a vital part of how to handle the challenges that come with being a
the law and economics focus of the University. Since working mom, I’ve come to really appreciate the
coming to Scalia Law in 1992, he has been a frequent flexibility my job provides and the support of my
contributor to economics and law and economics colleagues and supervisors. One of the best things
journals. He previously served as a senior economist about working here is the recognition that promoting a
with the Federal Trade Commission, a senior research healthy work-life balance is not only vital to hiring and
associate with the U.S. Sentencing Commission, and an retaining talented professionals, but it’s the right thing
economist with the U.S. Department of Justice. to do.
He teaches Litigation and Dispute Resolution Theory,
Quantitative Forensics, and Legal and Economic Barry Nigro
Theory of Intellectual Property. Deputy Assistant Attorney General, Department of
Justice
Professor Kobayashi was educated at the University of The US Department of Justice (DOJ) has announced in
California, Los Angeles, earning his BS in Economics a statement that Fried Frank antitrust partner Bernard
and System Science (1981), and his MA (1982) and A. Nigro has been named Deputy Assistant Attorney
PhD (1986) in Economics. General in the DOJ's Antitrust Division. In this role, Mr.
Nigro will work with a team of attorneys charged with
making the final call on policy issues and whether to
Aditi Mehta
sue or settle cases. Mr. Nigro officially joined on
Economist, Antitrust Division, Department of
August 21, 2017.
Justice

“On behalf of the Firm, I am pleased to congratulate
I’ve been an economist at the Antitrust Division for
Barry on this well-deserved honor,” said Firm chairman
nine years. This job has been a perfect fit for my skills
David J. Greenwald. “I also wish to thank him for his
and interests. As a graduate student at Boston
years of service to the Firm and to our Antitrust
University, my research examined competition in
Department, both of which are stronger today as a
health care markets. When I first started at the
result of his leadership.”
Division I spent a lot of my time working on merger and

conduct investigations in the health sector. I worked
Mr. Nigro joined Fried Frank as a partner in 1999 and
with a lot of smart economists and attorneys who
left in 2003 to serve as the Deputy Director for the
helped me understand how to think about important
Federal Trade Commission's Bureau of Competition
issues in antitrust. At the same time I was doing work
through 2005. During his tenure, he managed the
that allowed me to directly apply theoretical and
Bureau's merger and anticompetitive practices
empirical tools that I learned in graduate school to real
investigations and litigation. He additionally supervised
world issues. Starting from those early investigations, I
and participated in hundreds of matters involving a
was presenting my work directly to decision makers; it
variety of industries and regularly briefed
was really gratifying to see how my empirical results
Congressional offices on antitrust matters.
and views on the facts affected the outcome of an

investigation.
Mr. Nigro rejoined Fried Frank in 2009 and served as
chair of the Firm's Antitrust Department. He played an
As I spent more time at the Division I became
integral role at the Firm, providing service and results
interested in working on a broader set of industries. I
to clients defending their transactions against antitrust
quickly had the opportunity to learn how many
risk. In his practice, Mr. Nigro regularly appeared
different industries work, including various agricultural
before the Federal Trade Commission, the Department
products, airlines, software, and semiconductors. Over
of Justice, state attorneys general, and Congressional
the last few years I’ve found that each investigation has
offices to offer antitrust compliance counseling and
enough unique nuances and details that I am
training. He was involved in the antitrust clearance of
continually challenged to think about how to evaluate a
some of the Firm's most important transactions.
merger or potentially anticompetitive conduct given

the set of facts that I’ve learned. My colleagues
Fried Frank has one of the leading global antitrust and
continue to be an invaluable resource as I work through
competition practices. The Firm represents a wide
these issues that come up in each investigation.
range of major corporations in high-profile transactions
before the Department of Justice, the Federal Trade state court litigation around the United States. Alex
Commission, and the European Commission, as well as received his J.D. from Vanderbilt University Law
national regulatory authorities throughout Europe and School.
Asia. Together with members of the Firm's Corporate
and Litigation Departments, the team provides Leslie Overton
seamless global coverage from its offices in the United Partner, Alston & Bird
States and Europe. The Antitrust and Competition Leslie Overton is a partner in the Washington, D.C.
Practice's efforts are regularly recognized by Chambers office of Alston & Bird. She provides comprehensive
in its USA, UK and Global guides, by Legal 500 in its antitrust services to help clients assess and reduce risk.
US (first-tier law firm winner for Antitrust-Merger
Control) and UK guides, and by Global Competition
She works to develop and execute effective strategies
Review.
for merger reviews, civil non-merger investigations,

cartel investigations, and litigation involving federal,
A DOJ spokesperson in an official statement has noted:
state, and non-U.S. antitrust authorities. For clients
“We are pleased that Barry Nigro has joined the
concerned about anticompetitive conduct or
Antitrust Division as Deputy Assistant Attorney
consolidation by competitors, suppliers, or customers,
General. Barry has demonstrated a talent for leading
she engages in proactive advocacy. Leslie provides
and supervising antitrust matters during his time in
candid, practical antitrust counseling on strategic
private practice and as Deputy Director of the FTC's
business activities like pricing, distribution, and
Bureau of Competition. He has also contributed to the
licensing. She also helps tailor antitrust compliance
antitrust bar through his work in the leadership of the
programs to a client’s exposure and business realities.
ABA's Antitrust Section. His expertise and dedication
will be an asset to the Division.”
Leslie twice served in senior positions at the U.S.

Department of Justice (DOJ) Antitrust Division. As
Alex Okuliar
deputy assistant attorney general for civil enforcement
Partner, Orrick
during the Obama Administration, she supervised over
Alex is an antitrust lawyer and former senior
half of the DOJ’s merger challenges in fiscal years
government enforcer with experience handling deals
2012–2014, including litigation complaints,
and disputes in many industry sectors, including in
settlements, and transactions restructured or
particular matters involving technology, data, and
abandoned. Leslie also managed litigation and civil
innovation issues.
non-merger investigations, as well as several criminal
Alex divides his practice between transactions, antitrust matters. Leslie supervised the Antitrust
counseling, and litigation. From 2012-2015, Alex served Division’s international engagement and health care
as advisor to FTC Commissioner Maureen Ohlhausen, policy work. As counsel to the assistant attorney
counseling her on the agency's numerous general during the Bush Administration, she
investigations, enforcement actions, and contributed to investigations, litigation, and the
policies. He focused heavily on seminal health care hearings and report with the FTC.
key developments raising new issues for US and global
regulators, including big data, the growth of online
She has been recognized by Best Lawyers, Global
technology platforms, and the intersection of
Competition Review’s “40 under 40,” the National Bar
intellectual property and antitrust. Earlier, from 2010-
Association’s “40 Lawyers under 40,” The Root 100,
2012, Alex was a trial attorney at the DOJ Antitrust
and as an “Outstanding Healthcare Antitrust Lawyer”
Division focused on technology and finance. Alex also
by Nightingale’s Healthcare News.
worked on dozens of health care and hospital matters
while at the FTC and DOJ and maintains a practice in
the health care sector. Leslie received her B.A. from the University of
Pennsylvania and her J.D. from the University of
Michigan.
Prior to his government service, Alex spent more than

a decade in private practice at other leading
international law firms. He defended the transactions Chul Pak
of domestic and international technology, media, and Partner, Wilson Sonsini Goodrich & Rosati
energy clients before antitrust agencies and Chul Pak is a partner in Wilson Sonsini Goodrich &
represented class action defendants in federal and Rosati's antitrust practice, where he focuses on
antitrust litigation, mergers, and counseling. Chul
defends clients in class actions, individual lawsuits, and privately funded research and development activity, for
complex multi-district antitrust litigations across the constructing a more accurate Consumer Price Index,
United States. His litigation matters include and for analyzing the impact of incentive schemes on
representing manufacturers, services companies, and the hospital allocations of doctors. Many of Ariel’s
technology firms in monopolization, tying, exclusive methodological contributions have been incorporated
dealing, price-fixing, patent misuse, and conspiracy into the work of government agencies and private
claims. Chul also counsels companies in mergers and firms. Ariel has mentored over sixty doctoral students,
non-merger investigations before the Federal Trade many of whom are now leading researchers at
Commission, the Department of Justice, and numerous prestigious universities.
state attorneys general.
Additionally, he has done work for a number of
Prior to joining the firm, Chul served as the assistant consultancies, government agencies, and large firms.
director of the Mergers IV Division at the Federal Ariel is married with two children and a granddaughter.
Trade Commission. In that role, Chul supervised a 25- They all enjoy hiking, jazz, and watching the NBA.
attorney team responsible for investigating mergers
Sonia Pfaffenroth
and acquisitions across a wide spectrum of industries,
Partner, Arnold & Porter Kaye Scholer LLP
including consumer goods (food and beverages), retail
Sonia Kuester Pfaffenroth rejoined Arnold & Porter in
stores (supermarkets, department stores, and other
2017 from the Antitrust Division of the US Department
retail venues), cable and related media entertainment,
of Justice (DOJ) where she served most recently as
and hospitals. Chul also represented the FTC in
Deputy Assistant Attorney General for Civil and
numerous high-profile trials in federal court and the
Criminal Operations. In that role, Ms. Pfaffenroth was
FTC's internal administrative adjudication tribunal.
responsible for supervising both civil and criminal
antitrust enforcement efforts, as well as the Division's
Chul received his J.D. from the New York University
work with antitrust and competition law enforcement
School of Law.
agencies worldwide.

While at the DOJ, Ms. Pfaffenroth oversaw a number of
Ariel Pakes
the Division's most significant matters, including the
Professor, Department of Economics, Harvard
Division's challenges to the Anthem/Cigna and
University
Aetna/Humana mergers and the American Express
Ariel Pakes is the Thomas Professor of Economics in
litigation. In addition to her responsibilities with respect
the Department of Economics at Harvard University,
to the Division's international program, she also
where he teaches courses in Industrial Organization
supervised a broad range of legal policy initiatives and
and Econometrics. He received the Frisch Medal of the
competition advocacy efforts. She previously served as
Econometric Society in 1986. He was elected as a
Deputy Assistant Attorney General for Civil
fellow of that society in 1988, of the American
Enforcement at the Antitrust Division and Chief of Staff
Academy of Arts and Sciences in 2002, and of the
and Senior Counsel to former Assistant Attorney
National Academy of Sciences in 2017. Ariel was the
General for Antitrust Bill Baer.
Distinguished Fellow of the Industrial Organization in

2007. In 2017 he received the Jean-Jacques Laffont
Before leaving to join the DOJ in 2013, Ms. Pfaffenroth
Prize and in 2018 the BBVA Frontiers of Knowledge
was a partner at the firm, where she represented
Award. Ariel’s research has focused on developing
companies in a range of industries in international cartel
methods for empirically analyzing market responses to
investigations, merger and acquisition reviews and civil
environmental and policy changes. This includes
antitrust litigation, as well as providing day-to-day
developing: i) demand systems that are capable of
antitrust counseling.
analyzing the impact of environmental changes (e.g.

mergers) on prices, ii) methods capable of analyzing
Ms. Pfaffenroth originally joined Arnold & Porter in
the impact of policy changes (e.g. deregulation) on
2005 after clerking for Judge Paul Friedman of the US
productivity, and iii) models capable of following the
District Court for the District of Columbia. She received
impacts of these changes on the evolution of markets
her J.D. from Stanford Law School.
over time. He and his co-authors have applied these

tools to the analysis of the auto, electricity, health care,
and telecommunications equipment industries. Ariel Kenneth B. Schwartz
also developed techniques for: analyzing the impacts of Partner, Skadden, Arps, Slate, Meagher & Flom LLP
Ken Schwartz represents clients in antitrust national competition agencies in the European Union,
transactional and advisory matters. He has worked in a the United Kingdom and elsewhere. Mr. Van Voorhis
diverse range of industries, including airlines, has a wealth of experience with merger clearance and
agriculture, chemicals, consumer products, defense in counseling clients on antitrust compliance and
and government contracting, energy, entertainment, competition issues, in addition to his litigation and
financial services, health care, insurance, media, arbitration experience.
medical devices, natural resources, private equity,
pharmaceuticals, retail and telecommunications. Mr. Van Voorhis has successfully defended clients’
transactions from government challenges as well as
Mr. Schwartz routinely appears before the U.S.
represented them in litigation and arbitration
Department of Justice, the Federal Trade Commission
proceedings. He has particular experience
and state antitrust authorities. He has assisted in
representing organizations in the technology, retail and
numerous high-profile transactions, including:
consumer products, healthcare, and media sectors.
Ainsworth Lumber Co. in its acquisition by
Norbord, Inc.; He also has extensive experience shepherding
the unsecured creditors committee of transactions through merger clearance and helping
American Airlines with respect to the merger with US clients conduct business efficiently while mitigating the
Airways; risk of violating antitrust and competition laws. In
particular, he has advised clients on structuring
Boral Limited in its $2.6 billion acquisition of
business relationships and counseling their employees
Headwaters Incorporated;
on a wide range of antitrust and competition issues.
Builders FirstSource, Inc. (a portfolio company
of JLL Partners) in its $1.6 billion acquisition of ProBuild Prior to joining Jenner & Block in 2016, Mr. Van
Holdings LLC from Devonshire Investors; Voorhis was a partner in the Washington, DC office of
CF Industries in the sale of its phosphate an international law firm, where he served as the head
business to The Mosaic Company and in an unsolicited of the North American Antitrust & Competition Law
Practice.
bid for Terra Industries, Inc.;
EMC Corporation in its $67 billion acquisition
Mr. Van Voorhis received his B.A. from Yale University
by Dell Inc.;
and his J.D. from Cornell University Law School.
HealthSouth Corporation in its acquisition of
the operations of Reliant Hospital Partners and in its Benjamin Wagner
acquisition of EHHI Holdings, Inc.; Vice President, Compass Lexecon
Ben Wagner is a Vice President in Compass Lexecon’s
Leidos Holdings Inc. in its $5 billion
Washington, DC office. He has performed empirical
combination with the realigned information systems
analyses supporting clients in both antitrust litigation
and global solutions business of Lockheed Martin
and merger review. Mr. Wagner specializes in antitrust
Corporation in a Reverse Morris Trust transaction;
and competition economics, applied econometrics, and
Otsuka Pharmaceutical in its acquisition of
complex analysis of large datasets, and has worked on
Avanir Pharmaceuticals;
matters across a wide range of industries, including
StandardAero, Inc., a portfolio company of telecommunications, flat panel displays, airlines, and
Veritas Capital, in its acquisition of Vector Aerospace hospitals.
Holding SAS (France) from Airbus SE (the
Netherlands); Mr. Wagner holds an M.S. and B.S. in Policy Analysis
and Management from Cornell University.
The Travelers Companies, Inc. in its US$490
million acquisition of Simply
Ken received his J.D. from Tulane Law School.
Ali Yurukoglu
Professor, Graduate School of Business, Stanford
Lee Van Voorhis
University
Partner, Jenner & Block
Ali Yurukoglu is an Associate Professor at the Stanford
Lee Van Voorhis is co-chair of Jenner & Block’s
Graduate School of Business. His research is in the
Antitrust and Competition Law Practice and a member
area of industrial organization. He applies statistics to
of the Corporate and Private Equity Practices. He has
game theoretic models to study antitrust, regulatory
more than 20 years of experience representing clients
policy and imperfect competition. His research focuses
before a host of US federal antitrust agencies as well as
on the media and telecommunications industries,
including studying a la carte pricing regulations in cable
television, as well as negotiations and mergers
between cable channels and cable distributors.

David Weiskopf

Executive Vice President, Compass Lexecon
(moderator)
David Weiskopf is an Executive Vice President at

Compass Lexecon and a member of the faculty at

Johns Hopkins University. Dr. Weiskopf specializes in
industrial organization, microeconomic analysis,
consumer behavior, applied econometrics and

statistics, and labor economics. He has testified as an

expert witness in private litigation regarding antitrust
issues, economic damages, and consumer behavior. He
has also published articles on merger simulation,

demand estimation, market definition for intermediate

goods, and consumer complaint rates. He has
presented theoretical and empirical papers at
academic conferences and has co-authored numerous

economic studies that were presented to antitrust

enforcement agencies around the world. He has led a
number of engagements evaluating competitive effects
as part of merger reviews. He has also consulted on a

number of matters involving allegations of
monopolization, market foreclosure, conspiracy/price-
fixing, and exclusive dealing/refusal to deal as well as
on employment and consumer protection matters. He
has served clients in a variety of industries and sectors,
including consumer products, department stores,
building materials, oilfield services, pharmaceuticals,
hospitals, funeral homes, supermarkets, cruise lines,
movie theaters, petrochemicals, plastics and chemical
distribution, and flour milling.
Dr. Weiskopf received a Ph.D. in Economics from
Vanderbilt University where he specialized in the fields
of industrial organization and econometrics.
STEVEN C. SALOP
Invigorating Vertical Merger Enforcement
ABSTRACT. This Feature summarizes why and how vertical merger enforcement should be
invigorated. In our modem market system, vigorous vertical merger enforcement is a necessity.
Strong enforcement is particularly important in markets where economies of scale and network
effects lead to barriers to entry and durable market power. Even when there are parallel vertical
mergers, the result may well be an anticompetitive reciprocal dealing, coordinated equilibrium
rather than intense competition among efficient integrated firms. Stronger enforcement would
involve several steps, including recognition that claims of elimination of double marginalization
do not deserve to be silver bullets and that behavioral remedies are generally unable to prevent
anticompetitive effects.
A U T H 0 R. Professor of Economics and Law, Georgetown University Law Center. The author
has greatly benefited from comments from Jonathan Baker, Dennis Carlton, Daniel Culley, Serge
Moresi, Nancy Rose, Mark Ryan, Michael Salinger, Jonathan Sallet, and Carl Shapiro, as well as
the Yale LawJournal editors. The author has written articles and consulted on numerous vertical
merger and other exclusionary conduct matters, for the merging parties, concerned competitors,
and government agencies, including some of the matters discussed here. All opinions are my own
and do not necessarily reflect the views of my colleagues or consulting clients. This work was not
funded by any entities.
1962