The “small significant non-transitory increase in price test” (SSNIP test) is a conceptual tool used to define the relevant market. In a standard market, the SSNIP test is implemented by first simulating a price increase by a hypothetical monopolist which owns just one product and, as long as that leads

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Tilburg University & University of Siena . 30 September 2008 . Abstract . I discuss the design and implementation of a SSNIP test in order to identify the relevant market in a media market.

1 The SSNIP test captures the idea that if a hypothetical monopolist is able to profitably raise prices for a group of products (or geographic area), then that group (or area) constitutes a relevant market since there is insufficient competitive market power and the relevant market. Plain said, the SSNIP test may have the downside that when using it, one cam define the relevant market too broadly, including products that are not substituible. distinct markets or whether they jointly constitute a single, broader carbonated soft drink market. 3 The Hypothetical Monopolist SSNIP Test To answer this market definition question, the Merger Guidelines dictate the use of the “hypo-thetical monopolist SSNIP test.”4 According to that test, product X is a relevant market if a profit- relevant market deﬁnitions. The SSNIP test considers only demand substitution, while the Full Equilibrium Relevant Market test, or FERM test, takes also into account strategic price adjustments of competitors, a form of quick supply substitution.

Downloadable! I discuss the design and implementation of a SSNIP test in order to identify the relevant market in a media market. I argue that in such a two-sided market the traditional SSNIP test cannot be applied as it is usually conceived but rather should be modified in order to take into account indirect network externalities.

at 327 ("Only about one-third of all adults responding in a 1991 survey said they would not eat all types of cereals"), few cases have involved directly asking customers whether they would switch to alternatives in response to a SSNIP. One of the tools used by competition authorities in defining the relevant market is the SSNIP (Small but Significant Non-transitory Increase in Price) Test or HM (Hypothetical Monopolist) Test. ‘Price’ is the most significant consideration for application of SSNIP Test.

avgränsa en relevant geografisk marknad är ett s.k. SSNIP-test. 1 Fletcher, A. and B. Lyons (2016) Geografic Market Definition in European

det relevant att BAT och JTI är viktiga aktörer på tobaksmarknaden som helhet. En vedertagen metod för att definiera den relevanta marknaden är det s.k. SSNIP- testet. Som källa anges Supermarket nr 5-6 2003.

Abstract . I discuss the design and implementation of a SSNIP test in order to identify the relevant market in a media market. I argue that in such a two-sided market the traditional SSNIP test cannot be relevant market deﬁnitions. The SSNIP test considers only demand substitution, while the Full Equilibrium Relevant Market test, or FERM test, takes also into account strategic price adjustments of competitors, a form of quick supply substitution. There is an other crucial diﬀerence between the two testing procedures. The SSNIP test single test for market definition, nor any hierarchy between the very many that are used in practice.
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However, the enhanced popularity should caution us into over dependence on this wonderful tool.

Cellophane Fallacy, double-sided/multi-sided av W Fagervall · 2020 — The thesis provides enlightenment of the relevance and functioning of the SSNIP-test and a review of case law when the test was presented as avgränsa en relevant geografisk marknad är ett s.k.
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4 Kokkoris I. (2005), “The Concept of Market Definition and the SSNIP test in the Merger unprofitable for the hypothetical monopolist, and the relevant market is

An increase of 5-10% of zero will still be equal to zero and theorizing an increase in price from zero to a positive number cannot be considered an adequate mathematical alternative. affected the relevant product market definition. The new draft decree instead adopts a more wholistic assessment of the relevant product market by considering the relevant factors at one go.

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The ACM’s analysis was confined to a qualitative analysis, looking at product characteristics, rather than using a “small but significant and non-transitory increase in price” test – known as an SSNIP test – to determine the relevant market.

a SSNIP market definition test, we illustrate the consequences for counterfactual. to structural methods that directly apply the “SSNIP test” to California In the case of hospital care, the relevant product market has not been an issue of. market, its use and importance for competition policy.

Relevant Market (1997) recognizes that supply substitution can be taken into account in the first phase of the delineation procedure, but only if a set of cumulative conditions are satisfied. • These are sometimes referred to as conditions for Market Aggregation –aggregate products that are not demand substitutes –and the relevant test is the

In the EU the HMT or SSNIP test was used for the first time in the Nestlé/Perrier case in 1992 Yes, according to the SSNIP test, the relevant market for the Orangada company is the market for all three juices combined. 3. The General Model The section extends the above three market example to N 2 markets. Our goal is to derive general formulas that facilitate the determination of the relevant market of a rm using observed History.

I argue that in such a two-sided market the traditional SSNIP test cannot be applied as it is usually conceived but rather should be modified in order to take into account indirect network externalities.