The setting for antitrust analysis -- Horizontal restraints : collaboration among competitors -- Monopoly -- Vertical restraints -- Mergers : horizontal, vertical, and conglomerate -- Discrimination under the Robinson-Patman Act.

We study the anticompetitive effects of predatory pricing and the efficacy of three policy responses. In a series of experiments where an incumbent and a potential entrant interact, we compare prices, market structures and welfare. Under a laissez-faire regime, the threat of post-entry price...