Standard economics provides a well-understood framework of the competitive determinants of market prices that is now widely accepted for antitrust analysis. In “two-sidedmarkets,” where firms supply products demanded by two interrelated groups of consumers, these competitive forces operate...

This article examines the conditions when predatory pricing or exclusive dealing antitrust principles should be the controlling legal standard for the evaluation of single product loyalty discount contracts. Following Meritor, it clarifies what it means for price to be “the predominant...

Kodak and Xerox are two recent, celebrated, and conflicting antitrust decisions. Both cases involve defendant firms that owned intellectual property and that refused to deal with independent service organizations. The most likely explanation for these refusals to deal was that both defendants...

It is undeniable that economics has had a huge effect on antitrust law over the last 30 years. Richard Posner, in the preface to the second, 2001 edition of his landmark book, Antitrust Law, notes that since the publication of the first edition of the book in 1976 there has been “a profound, a...

Economic theories of the firm are categorized into two types of theories – those that emphasize the role of the firm in mitigating holdup problems by firm ownership of residual control rights and those that emphasize the role of the firm in mitigating incentive problems by firm ownership of...

Resale price maintenance need not be economically justified by the prevention of free-riding. Consistent with business realities, point-of-sale retailer promotional efforts often have a significant effect on consumer demand for a manufacturer’s products; and manufacturers often use resale...

This paper clarifies the relation between per se hub-and-spoke and vertical rule of reason antitrust analysis, the tension between which is illustrated with a detailed examination of the Apple e-books case