3 March 2011

Road-testing UPP: the Zipcar/Streetcar merger

In December 2010 the UK Competition Commission (CC) cleared the acquisition of Streetcar, the largest provider of car club services in the UK, by Zipcar, a rival car club with operations in London and across North America.1 The post merger firm would account for some 80% of UK car club vehicles. The CC analysed the parties’ incentives to raise prices using a formulation of the Upward Pricing Pressure (UPP) test. UPP features prominently in the US horizontal merger guidelines …

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