New study reveals game-changing insights on competition policy in product markets.
The article compares different models used to understand how people choose between products. The researchers found that a more complex model called RCNL is better than simpler models like NL and RC. The RCNL model gives more accurate predictions about how prices change after mergers. However, the models don't always agree on which markets should be considered separate. Overall, the study shows that it's important to consider all factors that influence people's choices when analyzing competition in markets.