The relevant unit markets inside the a part dos case, since the elsewhere into the antitrust, “includes products which has actually realistic interchangeability towards objectives where he or she is introduced–speed, fool around with and you may features noticed.” (54) Hence, the business is set for consult substitution, and therefore centers on buyers’ views of which goods are appropriate substitutes or possibilities. (55)
The principles move to establish you to definitely during the implementing so it meaning, the fresh new businesses “use prevailing prices
Inside the merger cases, the antitrust administration agencies define locations by applying the brand new hypothetical monopolist paradigm. This new Horizontal Merger Advice state:
” (57) Regarding area dos framework, not, in case your inquiry is being conducted once dominance fuel has become resolved, having fun with prevalent rates can result in identifying areas also broadly and ergo inferring one monopoly electricity cannot can be found whenever, actually, it can. (58)
The situation which have having fun with prevailing pricing so you’re able to determine the market industry in the a dominance-restoration situation is named the latest “Cellophane Fallacy” as it arose into the an instance of cellophane, where problems before the Best Court try if the relevant markets was cellophane or all the versatile-packaging material. (59) Into the related several months, du Pont introduced more 70 % of cellophane in the Us. (60) Cellophane, not, “constituted below 20% of all the ‘flexible packaging material’ conversion.” (61) Brand new Court concluded that cellophane’s interchangeability together with other information made it part of a wider, flexible-packaging business.