How We Define Markets
In this episode of the ABA Antitrust Law Section’s "Trust & Trade" podcast, host Anant Raut is joined by Mike Singer and Cornerstone Research's Nathaniel Hipsman to explain how economists use the hypothetical monopolist and SSNIP tests to define markets. They also discuss the strengths and shortcomings of the tests, as well as the famous "cellophane fallacy" where the competitive price may actually be the monopoly price in disguise.