FTC Fight, Fold or Settle Simulator (beta version)

Hart-Scott-Rodino Merger Filing Enforcement Decision Analysis

Click on open cells to input parameters into javascript program, then obtain estimates of Fight, Fold and Settle probabilities by clicking on calculate statements.

Explanation of Data Requirements

Example of Valid Input Parameters

Input Relevant Data
sales of acquiring firm in millions (1999 fiscal year)
price of acquisition in millions
share of deal raising problems; 100 complete 50 half
month expect decision; 1-12
year expect decision; i.e. 2000
efficiencies relevant to deal; range 0 to over 50,median 1.7
Herfindal*Barriers, 0 if entry easy, otherwise up to 10000

This model uses publically released coefficient estimates contained in Coate, "Fight, Fold or Settle?: An Update on Resolving Merger Challenges at the FTC" 1998.

This paper updates the results found in "Fight, Fold or Settle?: Modeling the Reaction to FTC Merger Challenges," (with Andrew Kleit and Rene Bustamante), Economic Inquiry, 33(4), October 1995, 537-551.

As with all econometric models, using data outside the historical sample is risky. As the FTC has reviewed a wide assortment of HSR transactions, the major danger involves the time index. A user who believes the relevant time trends towards settlement have stopped is invited to input any month, along with a year of 1995 or 1996.