Understanding Antitrust and Its Economic Implications

Author: E. Thomas Sullivan,Jeffrey L. Harrison

Publisher: LexisNexis

ISBN: 0769895069

Category: Law

Page: 467

View: 808

This Understanding treatise is designed to supplement any antitrust casebook. When the first edition was published over twenty years ago, the Supreme Court was in the midst of reshaping antitrust law to reflect its philosophy that it should adhere to the teachings of economics. During the six years since the Fourth Edition was published, this process has continued as the Court sought to achieve greater consistency. For example: • The Court removed resale price maintenance (RPM) from the list of per se unlawful activities. • The Court has also made it clear that it would treat secondary line price discrimination - perhaps the last remaining element of the populous antitrust philosophy of the 1960s - in a manner consistent with its emphasis on efficiency. • The Court made one of its first forays into the theory of monopsony and addressed the question of how antitrust law applies to market power on the buying side of the market. The process of rationalizing antitrust law is far from complete. For example, the Court's newly announced position on RPM raises a number of issues. Specifically, many past decisions by the Supreme Court and lower courts reflect either approval or disapproval of the per se status of RPM. Now that the rule has been changed, the relevance of that law is in question. In addition, a truly consistent antitrust policy requires close attention to various exemptions. Exemptions based on non economic considerations are hard to reconcile with the path the Court has chosen. Finally, in a global economy, matters of market power and the competitive impact of various agreements must be viewed from an international perspective.

Antitrust Law

Policy and Procedure : Cases and Materials

Author: E. Thomas Sullivan,Herbert Hovenkamp

Publisher: N.A


Category: Antitrust law

Page: 852

View: 9380


Economics in Antitrust Policy

Freedom to Compete Vs. Freedom to Contract

Author: Mark Steiner

Publisher: Universal-Publishers

ISBN: 1581123701

Category: Business & Economics

Page: 191

View: 6816

In the field of antitrust, the freedoms to contract and compete can and do contradict. Profit-maximizing companies desire perfectly competitive input markets to minimize their costs, but want monopolistic markets for their outputs to maximize their profits. Consequently, they have strong incentives to undermine competition in their output markets. In a world without antitrust laws, many companies would thus eliminate competition by using their freedom to contract, either by entering into legally enforceable agreements which fix prices or divide up markets, or by merging and acquiring rivals to gain market control. Therefore, guaranteeing and safeguarding companies' abilities to compete comes at the cost of restricting their freedoms to contract. The states role in this task is a delicate one though: government intervention itself necessarily limits the economic freedom of individuals and firms, and limiting the freedom of contract has potentially detrimental effects on economic activity as well. Hence, antitrust policy must find the right balance between the two freedoms of competition and contract, allowing competition to flourish while upholding the contractual freedoms necessary for a functioning market. The policies in the U.S. and Europe used to protect competition with per se rules, setting clear boundaries for the freedom to contract where it interfered with the freedom to compete. Over the past decades, improvements in economic analysis provided measurable dimensions for 'competition' through measures like efficiency and welfare. With these new and complex economic tools, the aim of an antitrust policy moved away from an 'indirect' mechanism which provided and enforced a strict framework of negative per se rules within which the competitive process was allowed to happen. The current policies directly aim at promoting welfare by attempting to 'balance' the welfare effects of individual business practices, permitting contracts or mergers with benign effects and prohibiting contracts with detrimental effects on welfare in potentially every case. These economic insights have promoted a better understanding of the competitive process and contributed to improved antitrust rules. However, in the actual enforcement of antitrust laws, recent developments caused by the influence of economic analysis have had a detrimental impact on antitrust policy in both the U.S. and the EU. First, it increased the discretion of competition authorities, lowering legal certainty for companies and increasing the potential for wrong decisions. Second, it gave companies incentives to waste resources on rent seeking activities by using economic analyses to demonstrate efficiencies in complicated and timely investigations and litigation. And third, the predominant use of economic analysis has massively increased the costs of enforcement. This thesis is the first one to depict these negative effects caused by recent developments and shows that a policy with clear limitations through proposed per se rules would be superior for it would eliminate the illustrated negative effects.

Monopsony in Law and Economics

Author: Roger D. Blair,Jeffrey L. Harrison

Publisher: Cambridge University Press

ISBN: 1139490974

Category: Business & Economics

Page: N.A

View: 9737

Most readers are familiar with the concept of a monopoly. A monopolist is the only seller of a good or service for which there are not good substitutes. Economists and policy makers are concerned about monopolies because they lead to higher prices and lower output. The topic of this book is monopsony, the economic condition in which there is one buyer of a good or service. It is a common misunderstanding that if monopolists raise prices, then monopsonists must lower them. It is true that a monopsonist may force sellers to sell to them at lower prices, but this does not mean consumers are better off as a result. This book explains why monopsonists can be harmful and the way law has developed to respond to these harms.

International and Comparative Competition Law

Author: Maher M. Dabbah

Publisher: Cambridge University Press

ISBN: 1139492713

Category: Law

Page: N.A

View: 7922

This thorough appraisal of competition law and policy from an international and comparative perspective covers the role of different international organisations active in the area, the significance of multinational enterprises and, in particular, the differences between US and EU systems. Taking examples from regions such as Africa, the Middle East and Asia, Maher M. Dabbah looks at the law and policy in developing countries and at a regional level, the internationalisation of competition law and the doctrines of extraterritoriality, bilateral cooperation and multilateral cooperation as well as the relationship between competition and trade policy. The book should prove useful to anyone who is interested in gaining an insight into the international dimension of competition law and policy. It is written in a language and style which make such a complex topic both possible to understand and enjoyable.

Competition Policy and Resource Utilization

An Agenda for Resource-Dependent Developing Countries

Author: David Oluwadare Adetoro

Publisher: Cambridge Scholars Publishing

ISBN: 1443892084

Category: Political Science

Page: 295

View: 4119

This book examines the extent to which competition law and policy could be employed to promote the efficient allocation of resources in resource-dependent developing economies. Its background inquiry into competition policy and the analysis of economic problems of resource-dependent developing economies inspired by global competition trends in the United States and Europe provide an indispensable framework for understanding competition policy and current attitudes to regulation in a liberalised developing economy. The book provides a systematic exposition of some of the problems associated with resource-dependent economies and the implications for competition and what kinds of conduct in which firms can and cannot engage. In addition to building on basic competition and antitrust concepts, it offers insights into some prevailing problems, which include the issue of ‘resource curse’, rent-seeking, corruption, and abusive business practices, among others. Their examination here is aligned with scrutiny of the characteristics of developing countries in contrast to developed countries; Nigeria is taken as a proxy for resource-dependent developing countries. The book also determines whether competition law and policy could be used as a tool for addressing competition problems that may exist in resource-dependent developing countries. This book provides meaningful material for both undergraduate and graduate business school programs. In addition, it will be of great interest to lawyers, historians, economists, sociologists, and policy makers in both government and business who wish to understand competition issues in a clear and rigorous way in developing economies.

The institutional structure of antitrust enforcement

Author: Daniel A. Crane

Publisher: Oxford Univ Pr


Category: Law

Page: 252

View: 8004

The Institutional Structure of Antitrust Enforcement, by Daniel A. Crane provides a comprehensive and succinct treatment of the history, structure, and behavior of the various U.S. institutions that enforce antitrust laws, such as the Department of Justice and the Federal Trade Commission. It addresses the relationship between corporate regulation and antitrust, the uniquely American approach of having two federal antitrust agencies, antitrust federalism, and the predominance of private enforcement over public enforcement. It also draws comparisons with the structure of institutional enforcement outside the United States in the European Union and in other parts of the world, and it considers the possibility of creating international antitrust institutions through the World Trade Organization or other treaty mechanisms. The book derives its topics from historical, economic, political, and theoretical perspectives.

Antitrust and Monopoly

Author: Dominick T. Armentano

Publisher: Independent Inst


Category: Law

Page: 292

View: 1556

The stated purpose of antitrust laws is to protect competition and the public interest. But do such laws actually restrict the competitive process, harming consumers and serving the special interests of a few politically-connected competitors? Is antitrust law a necessary defence against the predatory business practices of wealthy, entrenched corporations that dominate a market? Or does antitrust law actually work to restrain and restrict the competitive process, injuring the public it is supposed to protect? In this breakthrough study, professor Armentano thoroughly researches the classic cases in antitrust law and demonstrates a surprising gap between the stated aims of antitrust law and what it actually accomplishes in the real world. Instead of protecting competition, professor Armentano finds, antitrust law actually protects certain politically-favoured competitors. This is an essential work for anyone wishing to understand the limitations and problems of contemporary antitrust actions.

Federal Antitrust and EC Competition Law Analysis

Author: Femi Alese

Publisher: Routledge

ISBN: 1351936794

Category: Law

Page: 558

View: 2037

This book provides the reader with a comprehensive analysis of US Federal Antitrust and EC Competition Law. It is encyclopaedic in coverage: examining every constituent element of the law and landmark decisions from the perspectives of economics and policy goals, explaining their implications for commercial operations and advocating policy reforms where necessary.

The Limits of Competition Policy

The Shortcomings of Antitrust in Developing and Reforming Economies

Author: A. E. Rodriguez,Ashok Menon

Publisher: Kluwer Law International

ISBN: 9041131779

Category: Law

Page: 199

View: 8092

What the authors offer is a thoroughgoing analysis clearly demonstrating that, whatever economic path developing countries pursue, imposing Western-style antitrust regimes will engender uncertainty, chill economic behaviour, and foster an unhealthy climate for business. They employ the influential error-cost methodology to appraise the performance of competition policy and to show how such a policy creates irresolvable tensions in fragile economies with weak institutions - economies characterized by informal rules of business practice, long-standing symbiotic business-state relationships, and unpredictable state action. They mount a powerful critique of the arguments of neo-institutionalists (who fail to recognize the vulnerable nature of emerging market economies) and competition `advocates' (who presume to stand ready and vigilant to enforce competition policy on state entities). --

Antitrust Law and Intellectual Property Rights

Cases and Materials

Author: Christopher R. Leslie

Publisher: Oxford University Press, USA

ISBN: 0195337190

Category: Law

Page: 681

View: 8124

In Antitrust Law and Intellectual Property Rights: Cases and Materials, Christopher R. Leslie describes how patents, copyrights, and trademarks confer exclusionary rights on their owners, and how firms sometimes exercise this exclusionary power in ways that exceed the legitimate bounds of their intellectual property rights. Leslie explains that while substantive intellectual property law defines the scope of the exclusionary rights, antitrust law often provides the most important consequences when owners of intellectual property misuse their rights in a way that harms consumers or illegitimately excludes competitors. Antitrust law defines the limits of what intellectual property owners can do with their IP rights. In this book, Leslie explores what conduct firms can and cannot engage in while acquiring and exploiting their intellectual property rights, and surveys those aspects of antitrust law that are necessary for both antitrust practitioners and intellectual property attorneys to understand. This book is ideal for an advanced antitrust course in a JD program. In addition to building on basic antitrust concepts, it fills in a gap that is often missing in basic antitrust courses yet critical for an intellectual property lawyer: the intersection of intellectual property and antitrust law. The relationship between intellectual property and antitrust is particularly valuable as an increasing number of law schools offer specializations and LLMs in intellectual property. This book also provides meaningful material for both undergraduate and graduate business schools programs because it explains how antitrust law limits the marshalling of intellectual property rights.

The Great Leveler

Capitalism and Competition in the Court of Law

Author: Brett Christophers

Publisher: Harvard University Press

ISBN: 0674495632

Category: Business & Economics

Page: 356

View: 6434

Brett Christophers shows how laws help capitalism maintain a crucial balance between competition and monopoly. When monopolistic forces dominate, antitrust law discourages the growth of corporations and restores competitiveness. When competition becomes dominant, intellectual property law protects corporate assets and encourages investment.

Cases and Materials on Modern Antitrust Law and Its Origins

Author: Thomas D. Morgan

Publisher: West Academic


Category: Law

Page: 918

View: 6992

'Cases and Materials on Antitrust Law and Its Orgins' are organized over four periods - a 25-year formative period from 1890 to 1914 in which most of today's issues were foreshadowed; a second 25-year period from 1915 to 1939 in which the 'rule of reason'

Handbook of antitrust economics

Author: Paolo Buccirossi

Publisher: The MIT Press


Category: Business & Economics

Page: 687

View: 3791

Over the past twenty years, economic theory has begun to play a central role in antitrust matters. In earlier days, the application of antitrust rules was viewed almost entirely in formal terms; now it is widely accepted that the proper interpretation of these rules requires an understanding of how markets work and how firms can alter their efficient functioning. The Handbook of Antitrust Economics offers scholars, students, administrators, courts, companies, and lawyers the economist’s view of the subject, describing the application of newly developed theoretical models and improved empirical methods to antitrust and competition law in both the United States and the European Union. (The book uses the U.S. term "antitrust law" and the European "competition law" interchangeably, emphasizing the commonalities between the two jurisdictions.) After a general discussion of the use of empirical methods in antitrust cases, the Handbook covers mergers, agreements, abuses of dominance (or unilateral conducts), and market features that affect the way firms compete. Chapters examine such topics as analyzing the competitive effects of both horizontal and vertical mergers, detecting and preventing cartels, theoretical and empirical analysis of vertical restraints, state aids, the relationship of competition law to the defense of intellectual property, and the application of antitrust law to "bidding markets," network industries, and two-sided markets. Contributors: Mark Armstrong, Jonathan B. Baker, Timothy F. Bresnahan, Paolo Buccirossi, Nicholas Economides, Hans W. Friederiszick, Luke M. Froeb, Richard J. Gilbert, Joseph E. Harrington, Jr., Paul Klemperer, Kai-Uwe Kuhn, Francine Lafontaine, Damien J. Neven, Patrick Rey, Michael H. Riordan, Jean-Charles Rochet, Lars-Hendrik Roller, Margaret Slade, Giancarlo Spagnolo, Jean Tirole, Thibaud Verge, Vincent Verouden, John Vickers, Gregory J. Werden.

Antitrust Policy and Interest-group Politics

Author: William F. Shughart

Publisher: Praeger Pub Text


Category: Business & Economics

Page: 208

View: 8422

This is the first study to apply the interest-group model of regulation to the study of antitrust law and policy. The application of this model enables the author to both identify important trends in the antitrust arena and demonstrate which groups have benefited most from antitrust legislation. Divided into three sections, the first provides an overview of antitrust law and policy, the second explores the various private interests that impinge on antitrust policy, and finally, Shugart examines the political economy of antitrust. His analysis clearly shows that the antitrust legislation of the last few decades has tended to benefit well organized private interest groups more than consumers.

Winners, Losers & Microsoft

Competition and Antitrust in High Technology

Author: S. J. Liebowitz,Stephen Margolis

Publisher: Independent Inst

ISBN: 9780945999843

Category: Business & Economics

Page: 325

View: 2222

Few issues in high technology are as divisive as the raging debate over competition, innovation, and antitrust. Why do certain products and technologies become dominant while others fail? Is there something about high technology that makes markets less dependable at choosing goods and services? Will the robust competition and technological advances of the past two decades continue? Or, will they be suffocated by larger firms employing monopolistic practices? Is antitrust primarily employed against monopolies to increase competition for the benefit of consumers, or is it actually a vehicle that firms use against their rivals to restrict the competitive process? This book examines these and other questions confronting high-technology markets.

EU Competition Law and Economics

Author: Damien Geradin,Anne Layne-Farrar,Nicolas Petit

Publisher: OUP Oxford

ISBN: 0191637491

Category: Law

Page: 600

View: 6393

This is the first EU competition law treatise that fully integrates economic reasoning in its treatment of the decisional practice of the European Commission and the case-law of the European Court of Justice. Since the European Commission's move to a "more economic approach" to competition law reasoning and decisional practice, the use of economic argument in competition law cases has become a stricter requirement. Many national competition authorities are also increasingly moving away from a legalistic analysis of a firm's conduct to an effect-based analysis of such conduct, indeed most competition cases today involve teams composed of lawyers and industrial organisation economists. Competition law books tend to have either only cursory coverage of economics, have separate sections on economics, or indeed are far too technical in the level of economic understanding they assume. Ensuring a genuinely integrated approach to legal and economic analysis, this major new work is written by a team combining the widely recognised expertise of two competition law practitioners and a prominent economic consultant. The book contains economic reasoning throughout in accessible form, and, more pertinently for practitioners, examines economics in the light of how it is used and put to effect in the courts and decision-making institutions of the EU. A general introductory section sets EU competition law in its historical context. The second chapter goes on to explore the economics foundations of EU competition law. What follows then is an integrated treatment of each of the core substantive areas of EU competition law, including Article 101 TFEU, Article 102 TFEU, mergers, cartels and other horizontal agreements and vertical restraints.