Integrating the Structural Auction Approach and Traditional Measures of Market Power

Packer__________

Price
_______________markdown____

Interquartile
range

Herfindahl
index

before merger (optimal bandwidth

= 0.36)

packer 1

1.06

1.15

packer 2

1.33

0.78

packer 3

2.77

0.81

packer 4

2.41

1.12

all four packers

2.00

0.91

0.264

after merger (optimal bandwidth

= 0.69)

Packers 1&2

5.78

1.10

Packers 3&4

3.89

2.26

all two packers

4.71

1.54

0.512