Economic analysis is a fundamental part of merger control. It underpins the theories of harm that guide merger reviews, and it provides the tools to interpret evidence when assessing these theories. Economic expertise can be of value at each stage of a merger investigation, from evidence gathering to the assessment of remedies.
The quantitative economic techniques used by competition authorities to analyse mergers range from diversion ratios, to pricing pressure indices, to merger simulations, among others. Several practical considerations and questions arise when using economic analysis in merger control, including: how to integrate economists into case handler teams, whether to use external expertise, and how to ensure economic analysis is easily comprehensible by decision-makers and courts.
In December 2020, the OECD Global Forum on Competition discussed after the expert panel, in breakout sessions organised in two time periods to enable as many delegates to participate as possible. For each time period, there was three breakout groups focusing on either:
- Surveys and other data gathering techniques
- Quantitative analysis
- The role of economists in merger teams and qualitative evidence review
