The "parallel behavior is enough" standard cannot assist the courts in distinguishing horizontal agreements to restrain trade from normal competition. It would very likely impose significant costs on the economy by distorting competitive incentives and encouraging meritless litigation designed...

This paper covers the activities of the Economic Analysis Group (EAG), during 2003-2004. It describes the economic analysis undertaken by EAG in several important investigations, litigations, and administrative and appellate matters

Of the many activities of the Antitrust Division of the U.S. Department of Justice, we have summarized some which raise interesting economic issues. We describe recent improvements in the methodology to be used in Coordinated Effects analysis of mergers. We also discuss four cases brought by the...

Did Microsoft artificial entry barriers (through its bundling and contractual practices) to remove a competitive threat to its Windows operating system or were Microsoft's actions explained by economic efficiency justifications? The paper presents an economic framework for examining this...

On November 6, 2001, the U.S. Department of Justice and the Microsoft Corporation reached an agreement on the terms of a proposed settlement. The proposed decree brought to a conclusion the most closely followed antitrust case in history. This paper examines whether the antitrust remedy embodied...

What price should entrants pay an incumbent monopoly for use of its assets? Courts, legislators, and regulators have at times mandated that incumbent monopolies lease assets required for the production of a retail service to entrants in efforts to increase the competitiveness of retail markets....

Economists widely agree that, absent sufficient efficiencies or other offsetting factors, mergers that increase concentration substantially are likely to be anticompetitive. Further, holding everything else equal, the magnitude of anticompetitive effects tends to be larger, the larger is the...

This paper discusses the economic issues involved in the government's case against Microsoft. In particular, we examine the competitive effects of Microsoft's contractual restrictions, including the bundling of its Internet browser with the Windows 98 operating system in agreements with computer...

The Telecommunications Act of 1996 generated substantial controversy regarding the prices that competitive local exchange carriers should pay for using the unbundled network elements ("UNEs") of local exchange carriers. Throughout the debate, two primary pricing methods have been advocated: (1)...