TO TEST THE MODEL, CONSIDER THIS SITUATION
Based on the evidence presented at trial, it becomes clear that the Government has identified a relevant market and justified a post-merger Herfindhal of 2400.
Also, the facts clearly support a finding of barriers to entry, but the defense has shown efficiencies and power buyers.
In conclusion, input:
- Herfindahl - 2400
- Barriers - 1
- Net Conditions - -2
This should generate an 42 (.4193) percent chance of a court injunction. Remember the numerical integration generates an approximation of the probability. Reading the result from a normal table generates an estimate of .4203.