Elzinga-Hogarty Test Law & Legal Definition

The Elzinga-Hogarty (E-H) test is a well-known tool of economists. In a merger setting, the purpose of the E-H test is to analyze patterns of consumer origin and destination and then to use that information. The E-H test is a matter of looking at how many people leave an area to get services (outflow) and how many people come into an area to get services (inflow). Both inflow and outflow are important in determining how much prices would have to increase within that area before lost business would make the price increase unprofitable. [HTI Health Servs. v. Quorum Health Group, 960 F. Supp. 1104 (S.D. Miss. 1997)].