LAW & ECONOMICS: FORECLOSURE TESTS - CONCEPTUAL FRAMEWORK - PREDATORY PRICES - MARGIN SQUEEZES - LOYALTY REBATES - BUNDLING - TYING

Foreclosures test: A unified conceptual framework

This article presents in a unified conceptual framework the anticompetitive foreclosure tests. Such practices include predatory prices, margin squeezes, loyalty rebates or bundling and tying rebates.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. I. Introduction 1. Prediction testing is the subject of much academic and practical debate and is probably one of the points on which there is most divergence between the two sides of the Atlantic. From a theoretical point of view, a debate, initiated by the Chicago School, concerns the rationality that could exist for a dominant operator to want to drive a competitor out of the market. From a practical point of view, this question is often of secondary importance, at least in Europe. The test set out by the European Commission is whether a pricing strategy is likely to result in foreclosure of a competitor and whether such foreclosure could be

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  • CRA International (Paris)

Quotation

Laurent Flochel, Foreclosures test: A unified conceptual framework, September 2009, Concurrences N° 3-2009, Art. N° 26584, www.concurrences.com

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