Working Paper
A Distance-based Algorithm for Defining Antitrust Markets
Abstract: We propose a simple algorithm for defining merger-specific geographic antitrust markets based on merging firm proximity. Applying it to over a thousand hypothetical bank mergers, we compare concentration measures in our markets to those defined by the Federal Reserve, which are not merger-specific, finding broad agreement but also offering potential improvements upon current definitions.
JEL Classification: G34; L40; C63;
https://doi.org/10.17016/FEDS.2025.051
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File(s): File format is application/pdf https://www.federalreserve.gov/econres/feds/files/2025051pap.pdf
Authors
Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2025-07-08
Number: 2025-051