LAW & ECONOMICS: CHARACTERISTICS OF BIDDING MARKETS - SPECIFIC TYPES OF ECONOMIC ANALYSES - BIDDING DATA - ASSESSMENT OF THE NON-COORDINATED AND COORDINATED EFFECTS OF HORIZONTAL MERGERS

The antitrust economics of bidding markets

The notion of bidding markets encompasses a broad variety of situations, and such markets do not warrant a general favourable or unfavourable presumption for antitrust enforcement. But their characteristics call for specific types of economic analyses. In particular, the study of bidding data may contribute to the assessment of the non-coordinated and coordinated effects of horizontal mergers.

1. In many markets, the textbook model of suppliers quoting prices and bringing their offering to the market fails to apply. Instead, competition takes place on a customer-by-customer basis, resulting into different prices and, possibly, different product characteristics for different customers. The recent advent of internet sourcing and electronic procurement auctions has increased the prevalence of this type of market functioning. Economists and competition authorities usually label these markets as bidding markets, even though the exact definition is less than clear-cut (see below). The European Commission has recently acknowledged the bidding-market nature of several markets affected by recent mergers, and correspondingly undertaken specific types of economic exercises, chiefly

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

Quotation

David Spector, The antitrust economics of bidding markets, May 2007, Concurrences Review N° 2-2007, Art. N° 13586, pp. 23-28

Visites 5461

All reviews