LAW & ECONOMICS : HOMOGENEOUS PRODUCTS - NOTIONS - MERGERS - EU & FRENCH - CASELAWS

Oligopolies with homogeneous products

This set of three papers are derived from the training session on oligopolies with homogeneous products organised by Concurrences Review and held on 21st January 2010 in Paris. The first paper is a short introduction by Prof. Anne Perrot aimed at briefly introducing the relevant notions. The second paper by Dr David Sevy concentrates on mergers with homogeneous products, from an economic point of view. The third paper, by Me Igor Simic, provides the reader with the lawyer’s point of view and detailed EC and French case law.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Introductory remarks Anne PERROT, Professor of Economics, University of Paris I Panthéon Sorbonne and ENSAE, Vice-President of the Competition Authority 1. The situation where imperfectly competing firms produce the same product (i.e. perfectly substitutable goods) is referred to as a 'homogeneous product oligopoly'. In practice such a situation rarely arises. Indeed, as we shall see, it leads under certain conditions to a particularly low profit for the firms or even, in the case of price competition, to zero profit. 2. As a result, companies generally seek to escape such a situation by differentiating themselves. This differentiation may affect the

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Authors

  • Compass Lexecon (Paris)
  • Bredin Prat
  • French General Inspectorate of Finance (Paris)

Quotation

David Sevy, Igor Simic, Anne Perrot, Oligopolies with homogeneous products, May 2010, Concurrences N° 2-2010, Art. N° 31322, www.concurrences.com

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