This software calculates the Werden-Froeb-index (WFI) for full mergers between firms that compete on prices (Bertrand competition). Required inputs are (current) sales volumes, unit prices, and the own- and cross-price-elasticities of those commodities involved in the merger.
For details on the WFI - including its definition if competition is in quantities (Cournot) and/or mergers are partial - and its use in merger control, see:
Goppelsroeder, M., M.P. Schinkel and J. Tuinstra, "Quantifying the Scope for Efficiency Defense in Merger Control: The Werden-Froeb-Index," Amsterdam Center for Law & Economics Working Paper, No.2006-10
© Marie Goppelsroeder, Maarten Pieter Schinkel, Jan Tuinstra and Eelko Ubels, 2006. All rights reserved.
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