FEDS Paper: A Distance-based Algorithm for Defining Antitrust Markets

Charles Taragin and Marco TaylhardatWe propose a simple algorithm for defining merger-specific geographic antitrust markets based on merging firm proximity. Applying it to over a thousand hypothetical bank mergers, we compare concentration measures in our markets to those defined by the Federal Reserve, which are not merger-specific, finding broad agreement but also offering potential improvements upon current definitions.