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In Illinois Brick Co. v. Illinois, the Supreme Court adopted a per se ban on private, treble damage antitrust suits by “indirect purchasers” in federal courts. The Court did so based on its belief that, if permitted, such actions could result in duplicative liability and protracted and...
Persistent link: https://www.econbiz.de/10012990979
Twombly and Matsushita have created a staged decision-theoretic inquiry in which courts ask at the pleading stage and, if necessary, again after discovery whether the plaintiff has made a sufficiently “plausible” showing to justify the expected direct and indirect costs of further inquiry....
Persistent link: https://www.econbiz.de/10012934699
The SSNIP test and Critical Loss Analysis are widely used tools for determining market definition in merger and sometimes other antitrust matters. However, the standard techniques used to test for a relevant antitrust market are incorrect when the firms in question operate two-sided platforms....
Persistent link: https://www.econbiz.de/10012708072
A multi-sided platform (MSP) serves as an intermediary for two or more groups of customers who are linked by indirect network effects. Recent research has found that MSPs are significant in many industries and that some standard economic results - such as the Lerner Index - do not apply to them,...
Persistent link: https://www.econbiz.de/10012712916
Persistent link: https://www.econbiz.de/10013037916
An important action that is illegal according to competition law, both in the US and Europe, is predatory pricing. In this paper we develop a model that allows an entrant to sue an incumbent for predatory pricing. The cost of production is essential for judgments in such cases, and we allow the...
Persistent link: https://www.econbiz.de/10012719265
This paper argues that empirical economic analysis in court proceedings is subject to important economic and legal restrictions, cumulating in a fundamental trade-off between accuracy and practicality. We draw lessons from two influential German court cases - the paper wholesaler cartel decision...
Persistent link: https://www.econbiz.de/10008699780
When firms collude and charge supra-competitive prices, consumers can bring antitrust lawsuits against the firms. When the litigation cost is low, firms accept the cost as just another cost of doing business, whereas when the cost is high, the firms lower the price to deter litigation. Class...
Persistent link: https://www.econbiz.de/10012120107
A long-term litigation has opposed AMD to Intel, the dominant firm in the chips market. The first reproached the second pricing practices aiming at excluding it from the market on another basis than a competition on the merits.Intel was accused of implemented an anticompetitive strategy through...
Persistent link: https://www.econbiz.de/10010859385
We analyze in this paper the TDLC’s ruling in an antitrust case against five health insurance providers (“Isapres”) in Chile, accused of colluding to reduce the coverage on the health insurance plans they offer. The TDLC is a court of appeals specialized in free competition and composed of...
Persistent link: https://www.econbiz.de/10010551427