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analysis five forces of framework
of scrutiny by antitrust
authorities. If the firms involved in the merger have registered weak or average
productivity growth performance relative to the industry, this would raise the
level of scrutiny. If substantial past market share fluctuations have involved the
party firms, this would raise the level of scrutiny as well because the merger may
be an attempt to stabilize competition. The baseline performance step is a
retrospective analysis, providing grounding for the prospective analyses described
below.
IV.2.2. Assessing the Health of Competition
The next level of analysis is to predict the effects of the merger on long term
productivity growth by determining its effects on the health of competition. Five forces
analysis is used to measure the health of industry competition in all relevant markets and
submarkets, while the diamond framework is used to measure its likely effect on the
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health o