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The Use of Price Correlation Analysis for Relevant Market Definition

August 2016

The present article was published in the book “Economics of Consumer Protection. Vertical Restraints”, which presents the contributions of an international conference co-organised by the Polish Competition Authority and the Center for Antitrust and Regulatory Studies in Warsaw in October 2015.  

The present article discusses the use of price correlation analysis in European Commission decisions and presents resulting conclusions. First, it introduces technical aspects of price correlation analysis for the purposes of relevant market definition. In particular, it discusses potential problems that may arise during its use and steps that can be taken to overcome them.

It also indicates what data is needed for the analysis. Second, it discusses selected decisions of the European Commission that use price correlation analysis for relevant market definition. The overview of these decisions provides useful insights on how to provide an economically meaningful price correlation analysis. 

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