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Recapture ratios in merger analysis

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Most quantitative tools for assessing competitive effects of mergers rely heavily on recapture ratios (also known as aggregate diversion ratios). Recapture ratios measure the proportion of customers switching away from… Click to show full abstract

Most quantitative tools for assessing competitive effects of mergers rely heavily on recapture ratios (also known as aggregate diversion ratios). Recapture ratios measure the proportion of customers switching away from a product that is captured by other products within the market rather than outside the market. We propose a simple approach for approximating recapture ratios which can be usefully applied in merger and competition cases.

Keywords: merger; ratios merger; merger analysis; recapture ratios

Journal Title: Economics Letters
Year Published: 2018

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