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Trust and Trade

Mergernomics: Diversion Analysis

Joanna Tsai, Anant Raut, and Carla A R Hine

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In this latest episode of our wildly popular "Mergernomics" series, Ph.D. economist Dr. Joanna Tsai explains diversion analysis, an economic tool used by antitrust enforcers to examine how closely two companies compete and whether their merger will be bad for consumers. Host Anant Raut and co-host Carla Hine then dive into different types of diversion analysis, as well as some of the limitations of the test.

Related link: The Role of Economic Analyses in Preparing for the First 30 Days of A Merger Review

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