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Necessary and sufficient conditions in merger control: The use of HHI and threshold value
Blekinge Institute of Technology, School of Management.
Responsible organisation
2012 (English)In: Applied Economics, ISSN 0003-6846, E-ISSN 1466-4283, Vol. 44, no 7, p. 867-878Article, review/survey (Refereed) Published
Abstract [en]

This article considers two coarse measures applicable to antitrust policy: one of market concentration, the Herfindahl-Hirschman Index (HHI) and one of market dominance, threshold value. Calculations of threshold value are compared to HHI values to determine when thresholds might be of specific use in merger cases. Many scenarios which satisfy the threshold conditions (indicating a dominant firm exists) are consistent with high HHI numbers such that current US Department of Justice and European Commission guidelines (based on HHIs) for merger concerns will have been met. It is suggested as a rule of thumb that HHIs be used as necessary conditions and threshold value be considered sufficient conditions for further case review.

Place, publisher, year, edition, pages
Taylor & Francis , 2012. Vol. 44, no 7, p. 867-878
Keywords [en]
firm size, industrial enterprise, market conditions, merger
National Category
Business Administration
Identifiers
URN: urn:nbn:se:bth-7188DOI: 10.1080/00036846.2010.524632ISI: 000301534900006Local ID: oai:bth.se:forskinfoE9E04A0C46E42DA3C125797400478E89OAI: oai:DiVA.org:bth-7188DiVA, id: diva2:834770
Available from: 2012-11-27 Created: 2011-12-28 Last updated: 2017-12-04Bibliographically approved

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Hellmer, Stefan

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