Abstract
The 2010 Department of Justice and Federal Trade Commission Horizontal Merger Guidelines lay out a new standard for assessing proposed mergers in markets with dierentiated products. This new standard is based on a measure of \upward pricing pressure, (UPP) and the calculation of a \gross upward pricing pressure index (GUPPI) in turn relies on a \diversion ratio, which measures the fraction of consumers of one product that switch to another product when the price of the rst product in
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