The Lerner relationship linking the profit-maximizing price to marginal cost and the elasticity of demand generalizes to the price-setting newsvendor, and the result resolves the puzzle over the different effects of additive and multiplicative uncertainty on the solution. Multiplicative...

Economics at the Federal Trade Commission (FTC) supports both the competition and consumer protection missions of the agency. In this year’s essay we discuss a range of activities focusing on data-intensive antitrust cases in the hospital and consumer products industries. We also discuss our...

In November 2007, the European Commission accepted a set of guidelines concerning its review of non-horizontal mergers. The section on conglomerate mergers contains a discussion of the possibility that merging firms will bundle their products together. It reads, in part: "[W]hen producers of...

With a major set of hearings scheduled in the United States on the antitrust treatment of single-firm conduct, economists have an opportunity to provide analysis that informs policy. Yet, the opportunity will be lost if economic analysis does not provide insights into how to distinguish...

This article is a transcript of the presentations given by Dennis Carlton and Michael Salinger at the University College London’s Annual Antitrust and Regulation Forum held on February 21, 2007 and hosted by the Jevons Institute for Competition Law and Economics.