Economists INK: Winter 2020
This issue discusses the Equal Employment Opportunity Commission’s (“EEOC”) Component 2 data requirement, the Department of Justice (“DOJ”) and State of North Carolina’s challenge of Atrium Health’s anti-steering restrictions, and antitrust analysis with upward pricing pressure (“UPP”) and cost efficiencies. Dr. Andrei discusses the EEOC’s decision to not seek approval for the continued collection of Component 2 data, including a discussion of both the usefulness and burden of collecting the pay and hours data required for Component 2. Dr. Albert discusses the recent challenge and settlement of Atrium Health’s anti-steering restrictions, including the arguments made by both sides following the contemporaneous court decisions in the American Express case. Dr. Dutra discusses modified UPP formulations that include merger-specific cost efficiencies, finding that these modified UPP formulations have lower median post-merger price predictions and yield substantial gains in post-merger price prediction and merger screening accuracy.