Econometric analysis in FTC v. Staples

Econometric evidence played an important part in the litigation of the Fede ral Trade Commission's (FTC's) successful challenge to the proposed merger of Staples and Office Depot. In this article, the author describes the moti vation and methods behind the FTC's econometric analyses of pricing. He als o sets forth lessons for the process of relying on econometric evidence in merger investigations.