A firm proposes a merger in what can be described as a concentrated market, protected by barriers to entry and subject to collusion. However, a detailed review of the evidence suggests entry might really be possible and the collusion might not occur after all. Moreover, the deal offers significant efficiencies.

This situation tends to suggest that the BC index should be set to 3, while the BE index takes on the value 1. The Efficiency index should be one.

The deal, worth 1 billion dollars, has just been filed (so the Clinton dummy will be operative).

In review, input the following variables:

• BC - 3

• BE - 1

• Efficiencies - 1

• Value - 1000

• Clinton - 1

• Democrats - 0

And an 64 (63.92) percent change of a complaint (exluding political variables)

The exact figures (from a normal table) are 44.19 and 64.06. Thus, the approximation works well for two digits (i.e. 44 percent).