LAW AND ECONOMY : COLLECTIVE DOMINANT POSITION - CONCEPT - ECONOMIC PROOF - CHARGE OF PROOF - LEGAL CERTAINTY - CUMULATIVE CRITERIA - TRANSPARENCY - SUSTAINABLE AND TACIT COORDINATION - NON CONTESTABLE MARKETS - STRATEGIES - STRUCTURAL ENVIRONMENT

Collective dominant position: Economic and legal points of view

This set of three papers is derived from the training session organised by Concurrences Review that has held on 14th June 2011 in Paris. The first contribution written by Anne Perrot, is dedicated to the definition of the fundamental notions. In the second contribution, Jeanne Lubeck explains tant for a collective dominant position to be established, the economic proof of three cumulative criteria, i.e. market transparency, sustainable tacit coordination and non contestable markets is required for a continuum of situations. The infringement is particularly tough to ascertain since the strategies adopted by firms leading to non-competitive equilibria might as well be the result of a simple adaptation to a structural environment. Behavioral economics explains collusive equilibria via suboptimal strategies under a bounded rationality hypothesis, which simplifies the analysis required but not the charge of proof demanded. Typically adopted in concentration control, the concept of collective dominant position calls for further research on assessing criteria and infringement proof in order to facilitate its application and ensure greater legal certainty. Finally, the third contribution, written by Olivier d’Ormesson provides us with the Lawyer point of view.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Collective dominanceIntroduction Anne PERROT Professor at the University of Paris I - Panthéon-Sorbonne Vice-President of the Competition Authority 1. For economists, tacit collusion is the underlying concept of collective dominance. It refers to situations in which undertakings may, without maintaining contacts, behave in a coordinated manner, following a common line of action similar to that which an organised cartel would have set up. It is therefore conceivable that the conditions under which the implementation of such joint conduct is possible on a lasting basis require certain market configurations. 2. For competition authorities, historically, the

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

Authors

Quotation

Anne Perrot, Olivier D'Ormesson, Jeanne Lubek, Collective dominant position: Economic and legal points of view, September 2011, Concurrences N° 3-2011, Art. N° 36990, www.concurrences.com

Visites 2568

All reviews