Joseph M Simons

US Patent:

20050283413, Dec 22, 2005

Filed:

Jun 14, 2005

Appl. No.:

11/152714

Inventors:

Joseph Simons - McLean VA, US

International Classification:

G06F017/60

US Classification:

705030000

Abstract:

Section 7 of the Clayton Act, 15 USC 18, prohibits mergers that substantially lessen competition, which has generally been interpreted to prohibit mergers that reduce consumer welfare. Determining whether consumer welfare is reduced in any particular market requires a balancing of the procompetitive and anticompetitive effects of the transaction. The present invention provides a method for analyzing mergers and balancing the efficiencies and anticompetitive effects to determine whether a merger is overall beneficial or neutral for consumer welfare. The method utilizes the risk-adjusted, net present value (NPV) for both the competitive effects and the efficiencies of the merger then determines whether a particular merger should be challenged as anticompetitive based on an analysis of this NPV.