Oct 2, 2017 For example, higher market shares and market concentration levels For this purpose, the “hypothetical monopolist” or SSNIP test may be 

2021-03-01

As to the first question, if customers would not switch between the products being grouped together for the purpose of applying the hypothetical monopolist test, it is not meaningful to ask whether they would switch to a product outside the proposed market following a SSNIP. For example, United States v. How does the SSNIP test work for two-sided platforms? In essence, the SSNIP test is about a comparison of prices in two situations: before and after hypothetical monopolisation of candidate products or services. The question is whether the price in the latter situation is more than 5–10% higher than the price in the former. The Hypothetical Monopolist Test The S mall but S ignificant and N on‐transitory I ncrease in P rice (SSNIP) test is typically used to inform the definition of the relevant market in a consistent way. It typically forms the basis of the Hypothetical Monopolist Test (HMT).

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The classic economic model to assess the demand substitution is the SSNIP (Small but Significant Non-transitory Increase in Price) test, i.e. by assessing, whether customers would switch to 4 Ibid, para 7. 5 Ibid, para 8. 6 Ibid, para 2.

breakthrough represented by the SSNIP test, for example, contributed not only to the market definition process but also to the fuller understanding of what constitutes market power and what does not. c) The Relationship of Market Definition to the Respective Applicable Substantive Standard

3 For example, of the 36.1% of consumers who stated that would make changes to their current. (the “SSNIP test”).

a SSNIP market definition test, we illustrate the consequences for First, our example highlights the importance of including demand substitution pat- terns and 

Within this, there are still subtle issues. The SSNIP Test and Zero-Pricing Strategies: European Competition and Regulatory Law Review Volume 2, Issue 4 (2018) pp. 244 - 257 DOI: An Implementation of the Hypothetical Monopolist Test described in the 2010 Horizontal Merger Guidelines.

Competition regulating authorities and other actuators of antitrust law intend to prevent market failure caused by cartel, oligopoly, monopoly, or other forms of market dominance. thetical monopolist SSNIP test.”4 According to that test, product X is a relevant market if a profit-maximizing hypothetical monopolist of product X could impose a small but significant, nontransi-tory increase in price (SSNIP) above the current prices of the brands of product X. In the example, The Hypothetical Monopolist or Small but Significant Non-transitory Increase in Prices (SSNIP) test defines the relevant market by determining whether a given increase in product prices would be The SSNIP Test First set out in 1982 US Department of Justice Merger Guidelines. SSNIP test seeks to identify smallest market within which a hypothetical monopolist could impose a Small Significant Non-transitory Increase in Price Usually defined as a price increase of 5% for at least 12 months.
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An example of when the test is adequate in the situation of an exceedingly price elastic demand side is in the pharmaceutical sector.

We show that in situations with asymmetries – for example one product having a limited sale – a uniform SSNIP test can suggest that the relevant market should An Implementation of the Hypothetical Monopolist Test described in the 2010 Horizontal Merger Guidelines.
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9. The classic economic model to assess the demand substitution is the SSNIP (Small but Significant Non-transitory Increase in Price) test, i.e. by assessing, whether customers would switch to 4 Ibid, para 7. 5 Ibid, para 8. 6 Ibid, para 2. 7 Ibid, para 13. 8 Case 6/72 Europemballage Corp & Continental Can Co Inc v Commission [1973] ECR 215.

The SSNIP test is also known as the ‘5% test’, after the quantitative threshold described in the test. The SSNIP test is also commonly referred to as the ‘hypothetical monopolist’ test.

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

If the SSNIP test is used to test whether a market definition for a particular product or service (i.e. Product X) is correctly defined in terms of its geographic boundaries, then that test will entail: flexibility with respect to whether the HMT (alternatively, the “SSNIP test”) might involve raising the price of one product or raising some or all the prices in the candidate . 10.

Therefore, it is also known, sometimes, as 5-10 per cent test. The 2021-02-08 · The Hypothetical Monopolist or Small but Significant Non-transitory Increase in Prices (SSNIP) test defines the relevant market by determining whether a given increase in product prices would be 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 Global Economics Whiteboard Series: David Evans, Chairman, provides an introduction to the widely used Hypothetical Monopoly test (also known as the SSNIP te We show that in situations with asymmetries - for example variations in revenues - a uniform SSNIP test may suggest that the relevant market should include more products even though it could be This is generally done using the SSNIP-test. However, in digital markets, where consumers are often offered services for free, the SSNIP test cannot be performed, being the price equal to zero.