Defining Markets for Ex Ante Regulation using the Hypothetical Monopoly Test

The EU is gradually systematizing its approach to ex ante regulation (notably with the publication of the recent regulatory framework for Electronic communications). Market definition is viewed as an essential first step in this, with the 'Hypothetical Monopoly Test' a useful conceptual tool for use in the assessment. This paper examines the use of this test for market definition when there are several differentiated goods or services under consideration. It sets out an analytic framework, discusses the pros and cons of using the test and illustrates its use in a Telecom context.Market Definition, Hypothetical Monopoly Test, SSNIP Test, JEL Classifications: L41, L42, L5,

Assessing the Degree of Spot Market Integration for U.S. Natural Gas: Evidence from Daily Price Data

This paper assesses the degree of market integration in the U.S. natural gas market following the FERC’s ‘open access’ reforms. Daily spot prices at 76 market locations from 1993 to 1997 are used to examine the geographic extent of the market and the speed with which market forces move prices toward equilibrium in the face of ongoing price shocks. The empirical results suggest that the East and Central regions form a highly integrated market, but that this market is quite segmented from the more loosely integrated Western market. Copyright Springer Science+Business Media, Inc. 2006Natural gas market, Market integration, Law of one price, L95, Q48,

The Economic Effect Of Competition Law Enforcement: The Case Of The Netherlands

Competition law, Antitrust enforcement, Mergers, Macro-economic effects, L16, L40, L50,

Validating Simulation Models: A General Framework and Four Applied Examples

Simulation, Validation, Agent-based computational economics, Antitrust, Functional complexity, Schelling, Sufficiency, Daubert criteria, C63, C15,