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- Title
- An Analysis on Relevant Market Delineation
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- Author
- Hyun Jong Kim
- Type
- Research Reports
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- Subject
- Corporate/Industrial Policy, Deregulation
- Publish Date
- 2010.11.15
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- File
- -
- View Count
- 10060
Using Salrop(1979)’s spacial model, this research examines how the technical convergence affects the market equilibrium and SSNIP test, the measure method for delineating the relevant market. We show that, as the convergence progresses, the number of firms shrinks in the market and the SSNIP test allows wider ranges for the relevant market. This implies that the governmental agency are misled to test the market definition if it fails to calculate the demand divergent ratio with the convergence level. Therefore this report suggests to replace the higher price changes from the current 5-10% level for the SSNIP test on high-tech industries. Additionally, this paper studies that the critical analysis criterion for the asymmetric multi-sided market competition case. We suppose the platform competition where the platform 1 sells in the market A, B and C while the platform 2 sells in A and B. The results show that the actual loss of the platform 1 is bigger than one of platform 2. This implies that the asymmetry of actual losses appears in the asymmetric multi-sided market competition. on the other hand, we explain what affects to the relevant market delineation of the cluster market.
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