Review of Industrial Organization (2005) 27:197–221 © Springer 2005
The Year in Review: Economics at the Antitrust
, KEN HEYER and ROBERT MAJURE
Economic Analysis Group, Antitrust Division, US Department of Justice, 600 E Street
N.W., Suite 10000, Washington, DC 20530, U.S.A.
Abstract. This paper covers the activities of the Economic Analysis Group (EAG), during
2004–2005. It describes the economic analysis undertaken by EAG in several important
investigations, appellate matters, and other activities as an advocate for competition.
Key words: antitrust, competition policy, mergers.
Since last year’s report from the Antitrust Division’s front lines (Sibley and
Heyer, 2004), the members of the Economic Analysis Group (EAG) have
worked on a typically wide range of interesting and important economic
issues. Our report this year does not attempt to discuss the full spectrum
of matters on which signiﬁcant work was performed. Rather, it focuses pri-
marily (though not exclusively) on the economic analysis performed in mat-
ters arising in three of the industries that received a disproportionate share
of our attention – airlines, real estate, and telecommunications.
Much of the work done in EAG continues to focus on traditional
questions of merger review: What are the relevant markets at issue, and
what competitive consequences are there likely to be in those markets
from the proposed merger? The telecommunications industry, in particu-
lar, experienced a wave of mergers among wireless carriers during this past
year. Economists at the Division examined these mergers intensively in
order to determine the appropriate markets and the likelihood of harm to
In addition to describing some our work in the airline, real estate, and
telecommunications industries, we report also on signiﬁcant developments
The views contained herein are solely those of the authors and do not necessarily
represent those of the U.S. Department of Justice.
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