

“The Implications of Robert L. Steiner’s Work for Merger Analysis,” The Implications of Robert L. Steiner’s Work for Merger Analysis,” Dr. Steiner’s work in dual-stage markets in which a retailer resells a manufacturer’s product to final customers are discussed. We conclude that (1) merger analysis by DOJ and the FTC do account for the vertical relationships that Steiner discusses, (2) while Steiner believes downstream price effects are essential in merger analysis, we find that evidence in several cases and speeches by FTC and DOJ officials that downstream price effects may not be needed for the agencies to conclude that a merger between two manufacturers is anticompetitive, (3) merger analysis of two manufacturers of consumer goods should use manufacturing-level pricing data, rather than retail prices, (4) in concurrence with Steiner, both the merger guidelines and the Courts have recognized the importance of monopsony power, and (5) Steiner’s concern that the agencies’ efficiency analysis may be too restrictive by only considering those at the manufacturing level, mergers where Steiner’s broader recommendation applies may be very rare.
The Antitrust Bulletin, Winter 2004.