1. Please indicate whether you agree with the following statements in italics, a

Question

1. Please indicate whether you agree with the following statements in italics, and explain your answer: (a) Failure to recognize the Cellophane Fallacy may result in defining an overly narrow market in cases involving alleged anticompetitive behavior. (b) Consider a good being sold in both city A and city B. The correlation coefficient between the price of the good in city A and city B (using weekly data over the period 2007 to the present) is 0.92. We may conclude that city A and city B are in the same geographic antitrust market.

Explanation / Answer

While both categories derive from market merger analysis, they have been widely applied by courts and analysts in circumstances where more general allegations of anticompetitive behavior have been made. It should be noted, however, that not all courts have accepted the use of these indicia for non-merger cases.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.