ECONOMIC AND LEGAL ASPECTS OF COMPETITION POLICY .

Course Topics and Readings.

Return to Main Menu


1. Introduction

Drucker, P., "Peter Drucker on the new business realities", The Antitrust Bulletin, Winter 1999, pp. 795-819.

Kovacic, W. & C. Shapiro, "Antitrust Policy: A Century of Economic and Legal Thinking", Journal of Economic Perspectives, Vol. 14, No. 1, Winter 2000, pp. 43-60.

Porter, M., "Michael Porter on competition", The Antitrust Bulletin, Winter 1999, pp. 841-880.

Posner, R., "The Law and Economics of the Economic Expert Witness", Journal of Economic Perspectives, Vo. 13, No. 2, Spring 1999, pp. 91-9.

Round, D. & J. Siegfried, "Can economists agree, or are some more agreeable than others?", The Antitrust Bulletin, Fall 1994, pp. 753-69.

Berry, M., (2002): Economists and the Law: An Antitrust Perspective, New Zealand Association of Economists Annual Conference, mimeo.

Term 1 Lecture 1

Return to Main Menu

Return to Top


2. An Overview of Welfare Economics & Concepts of Competition in Economics

Martin, S., Introduction (Chapter 1), The Welfare Consequences of Market Power (Chapter 2), Public Policy Toward Private Enterprise - Introduction (Chapter 3), Public Policy Toward Private Enterprise (Chapter 18). Massey and Daly, Chapters 2, 4, and 22.Scherer, F. & D. Ross, Chapter 2.

Baumol, W., "Contestable Markets: An Uprising in the Theory of Industry Structure", American Economic Review, Vol.72, No.1, March 1982, pp. 1-15.

Gilbert, R., "The Role of Potential Competition in Industrial Organization", Journal of Economic Perspective, Vol.3, No.3, Summer 1989, pp. 107-27.

Lande, R., "Chicago's False Foundation: Wealth Transfers (Not Just Efficiency) Should Guide Antitrust", Antitrust Law Journal, Vol.58, 1989, pp. 631-44.

Schwartz, M. & R. Reynolds, "Contestable Markets: An Uprising in the Theory of Industry

Structure: Comment", American Economic Review, Vol.73, No.3, June 1983, pp. 488-96.

Williamson, O., "Economics as an Antitrust Defence: The Welfare Tradeoffs", American Economic Review, Vol.63, March 1968, pp. 18-36.

Term 1 Lecture 2

Return to Main Menu

Return to Top


3. Market Definition, Market Power and Dominance

Massey and Daly, Chapter 5

European Commission, Commission Notice on the definition of the relevant market for the purposes of Community competition law, Official Journal: OJ C 372 on 9/12/1997 (available at www.europa.eu.int/comm/competition/antitrust/relevma_en.html).

U.S. Department of Justice and Federal Trade Commission, Horizontal Merger Guidelines, April 8, 1997 (available at www.usdoj.gov/atr/public/guidelines/guidelin.htm).

Camesasca, P. & R. Van den Bergh, "Achilles uncovered: revisiting the European Commission's 1997 market definition notice", The Antitrust Bulletin, Spring 2002, pp. 143-86.

Kaserman, D. & H. Zeisel, "Market Definition: implementing the Department of Justice Merger Guidelines", The Antitrust Bulletin, Vol.41, No.3, Fall 1996, pp.665-90.

O'Brien, D.P. and Wickelgren, A.L., (2003): A Critical Analysis of Critical Loss Analysis, Washington D.C.: Federal Trade Commission, 2003. www.ftc.gov/be/workpapers/wp254.pdf

Vickers, J., Abuse of Market Power, speech to European Association for Research in Industrial Economics, September 2004, www.oft.gov.uk/NR/rdonlyres/948B9FAF-B83C-49F5-B0FA-B25214DE6199/0/spe0304.pdf

Werden, G.J.: The 1982 Merger Guidelines and the Ascent of the Hypothetical Monopolist Paradigm, 2002, www.usdoj.gov/atr/hmerger/11256.pdf

M. Katz and C. Shapiro (2003): Critical Loss: Lets Tell the Whole Story, Antitrust Magazine, available at http://faculty.haas.berkeley.edu/shapiro/critical.pdf

Case Studies

Barker, J.B., (1996): Econometric Analysis in FTC v. Staples, American Bar Association's Antitrust Section Economics Committee, www.ftc.gov/speeches/other/stspch.htm

Dalkir, S., & F. Warren-Boulton, Prices, Market Definition and the Effects of Merger: Staples-Office Depot (1997), The Antitrust Revolution: Economics, Competition and Policy (Case 2), eds. Kwoka, J. & L. White, pp. 52-72.

Term 1 Lectures 3, 4, 5 and 6.

Return to Main Menu

Return to Top


4. Abuse of Dominance

Martin, S., Predation (Chapter 16). Massey and Daly, Chapter 8, Scherer, F. & D. Ross, Chapter 12, Phlips, chapters 11& 12

Baumol,W., "Predation and the Logic of the Average Variable Cost Test", Journal of Law and Economics, Vol.39, April 1996, pp. 49-72.

Gundlach, G. & J. Guiltinan, "A marketing perspective on predatory pricing", The Antitrust Bulletin, Winter 1998, pp. 883-916.

Kate, A. & G. Neils, "On the rationality of predatory pricing: the debate between Chicago and post-Chicago", The Antitrust Bulletin, Spring 2002, pp. 1-24.

Neils, G. & A. Kate, "Predatory pricing standards: is there a growing international consensus?, The Antitrust Bulletin, Fall 2000, pp. 787-809.

Scheffman, D. and Higgins, R.: 20 Years of Raising Rivals' Costs: History, Assessment and Future, George Mason University Law Review, 2004, www.ftc.gov/be/rrcgmu.pdf

Case Studies

Competition Authority, Interim Report of the Study on the Newspaper Industry (especially Chapters 6 and 7), 30 March 1995.

Edlin, A.S. and Farrell, J., The American Airlines Case: A Chance to Clarify Predation Policy, The Antitrust Revolution: Economics, Competition and Policy (Case 20), eds. Kwoka, J. & L. White, pp.502-27.

Phlips, Chapter 13 on ECS/AkZo.

Rubinfeld, D.L.: Maintenance of Monopoly: US v. Microsoft, The Antitrust Revolution: Economics, Competition and Policy (Case 19), eds. Kwoka, J. & L. White, pp.476-502.

Return to Main Menu

Return to Top

Term 1 Lectures 7 and 8. Term 2 Lectures 1 and 2.


5. Horizontal Restraints of Trade: Oligopoly and Tacit Collusion

Martin, S., Oligopoly - The Recognition of Interdependence (Chapter 5), Oligopoly - Collusion (Chapter 6). Scherer, F. & D. Ross, Chapters 6, 7, 8, 9, 10 & 16, Massey and Daly, Chapter 7. Phlips Chapters 5-8.

OECD, Committee on Competition Law and Policy: Mini Roundtable on Oligopoly, Working Paper (1999), In addition to the summary by the Secretariat, the EU Commission and both US submissions are worth reading. www.oecd.org/dataoecd/35/34/190256.pdf

Case Studies

Borenstein, S.: Rapid Price Communication and Coordination: The Airline Tariff Publishing Case The Antitrust Revolution: Economics, Competition and Policy (Case 9), eds. Kwoka, J. & L. White, pp.233-51.

Connor, J.M.: Global Cartels Redux: The Amino Acid Lysine Antitrust Litigation, The Antitrust Revolution: Economics, Competition and Policy (Case 10), eds. Kwoka, J. & L. White, pp.252-76.

Porter, R., and Zona, J.D.: Bidding, Bid-Rigging and School Milk Prices: Ohio v. Trauth, The Antitrust Revolution: Economics, Competition and Policy (Case 8), eds. Kwoka, J. & L. White, pp.211-32.

Rees, R.: Collusive Equilibrium in the Great Salt Duopoly, 1993, Economic Journal, 103: 838-48.

Schmalensee, R.: Entry Barriers in the Ready-to-Eat Breakfast Cereal Industry, Bell Journal of Economics, 9, 1978.

Slade, M.: Interfirm Rivalry in a Repeated Game: An Empirical Test of Tacit Collusion, Journal of Industrial Economics, 35, 1987: 499-516.

Term 2 Lecture 3, 4, 5 & 6

Return to Main Menu

Return to Top


6. Vertically Restrictive Agreements

Martin, S., Vertical Restraints (Chapter 17). Massey and Daly Chapter 7. Scherer & Ross, Chapter 15.

Review Articles

Baker, J.: Vertical Restraints with Horizontal Consequences: Competitive Effects of "Most-Favored-Customer" Clauses. www.ftc.gov/speeches/other/bakersp.htm

Brennan, T., ""Vertical" excuses for horizontal practices: should there be any per se antitrust rules?", The Antitrust Bulletin, Summer 2000, pp. 467-90.

Coase, R., "The Institutional Structure of Production", American Economic Review, Vol.82, No.4, September 1992, pp.713-19.

Competition Authority, Notice in Respect of Agreements Between Suppliers and Resellers, Decision No. N02/02, 1 July 2002 (available at http://www.tca.ie/).

Gilbert, R. and Katz, M., An Economist's Guide to US v. Microsoft, Journal of Economic Perspectives, 15(2) Spring 2001 25-44.

Salop, S., "Exclusionary Vertical Restraints Law: Has Economics Mattered?", American Economic Review, Vol.83, No.2, May 1993, pp. 168-72.

Schwartz, M. & D. Eisenstadt, "Vertical Restraints", Economic Analysis Group Discussion Paper, U.S. Department of Justice, EPO 82-8, July 1983 (especially pp.1-38).

Resale Price Maintenance

Schwartz, M. & D. Eisenstadt, pp. 38-50.

Telser,L., "Why Should Manufacturers Want Fair Trade", Journal of Law and Economics, Vol. 3, October 1960, pp. 86-105.

Case Studies

Bamberger, G.V.: Revisiting Maximum Resale Price Maintenance State Oil v. Khan, The Antitrust Revolution: Economics, Competition and Policy (Case 13), eds. Kwoka, J. & L. White, pp.334-49.

Competition Authority, Net Book Agreement, Decision No. 336 (available at http://www.tca.ie/).

Competition Authority, Enforcement decision in Statoil (available at http://www.tca.ie/)

Exclusive Distribution/Territories/Selling and Exclusive Dealing/Purchasing

Schwartz, M. & D. Eisenstadt, pp.51-65 & pp. 88-96.

Marvel, H., "Exclusive Dealing", Journal of Law and Economics, Vol. 25, April 1982, pp.1-25.

Simpson, J. and Wickelgren, A. The Use of Exclusive Contracts to Deter Entry, 2001, www.ftc.gov/be/workpapers/wp241.pdf

Case Studies

Competition Authority, Consultation on a Declaration in the Cylinder LPG Market, September 2004 (available at http://www.tca.ie/)

Shapiro, C.: Retailer Instigated Restraints on Suppliers' Sales: Toys"R"Us, The Antitrust Revolution: Economics, Competition and Policy (Case 15), eds. Kwoka, J. & L. White, pp.373-87.

Price Discrimination & Tie-Ins

Martin, S., Price Discrimination/Tying (Chapter 15). Scherer F. & D. Ross, Chapter 13.

Schwartz, M. & D. Eisenstadt, pp. 75-88.

Bergman, M., "The role of the essential facilities doctrine", The Antitrust Bulletin, Summer 2001, pp. 403-34.

Case Studies

Nabeluf, B., Bundling: GE-Honeywell, The Antitrust Revolution: Economics, Competition and Policy (Case 16), eds. Kwoka, J. & L. White, pp.388-413.

Shapiro, C. & D. Teece, "Systems Competition and Aftermarkets: An Economic Analysis of Kodak", The Antitrust Bulletin, Vol.39, No.1, Spring 1994, p.135-62.

Slade, M., Beer and the Tie: Did Divestiture of Brewer-Owned Public Houses Lead to Higher Beer Prices, Economic Journal, 108, May 1998.

Verboven, F.: Price Discrimination in a Common Market: International Price Discrimination in the European Car Market, Rand Journal of Economics 27, 1996: 240-68.

Lectures 7 & 8

Return to Main Menu

Return to Top


7. Mergers

Martin, S., Public Policy Toward Mergers (Chapter 10). Scherer, F. & D. Ross, Chapter 5.

Massey and Daly, Chapters 13-15.

Review Articles

Baker, J.,: Unilateral Competitive Effects Theories in Merger Analysis, 1996, www.ftc.gov/speeches/other/unilat61.htm

Competition Authority, Notice in Respect of Agreements Involving a Merger and/or Sale of Business, Decision No. N/02/001, 1 July 2002 (available at http://www.tca.ie/).

Competition Authority, Guidelines for Merger Analysis, November 2002 (available at http://www.tca.ie/).

Ivaldi, M. and Verboven, F.: Quantifying the Effects of Horizontal Mergers in European Competition Policy, 2001, Centre for Economic Policy Research, Discussion Paper No. 2697. http://www.cepr.org/

Neven, D., Nuttall, R. & P. Seabright, Merger in Daylight: The Economics and Politics of European Merger Control, Centre for Economic Policy, 1993 (Chapter 2 – The analysis of mergers).

U.S. Department of Justice and Federal Trade Commission, Horizontal Merger Guidelines, April 8, 1997 (available at www.usdoj.gov/atr/public/guidelines/guidelin.htm).

Massey, P., "Merger policy in Ireland", Irish Banking Review, Autumn 2001 pp. 30-42 (available at www.ibf.ie/about/pub.html).

McFetridge, D., "The Efficiencies Defense in Merger Cases", The Economics of the Antitrust Process (Chapter 5), eds. Coate, M. & A. Kleit, Kluwer Academic Publishers, 1996 pp. 89-115.

OECD: Mergers in Financial Services, 2000, Paris, OECD. See background note plus Australian, Canadian US and EU country papers. www.oecd.org/dataoecd/34/22/1920060.pdf

OECD: Portfolio Effects in Conglomerate Mergers, Paris: OECD, 2002, www.oecd.org/dataoecd/39/3/1818237.pdf Background note and US and EU country papers.

Symposium, Horizontal Mergers and Antitrust, Journal of Economic Perspectives, Vol.1, No.2 Fall 1987, pp. 3-54.

Case Studies

Horizontal

Barker, J.B.: Econometric Analysis in FTC v. Staples, American Bar Association's Antitrust Section Economics Committee, 1996, www.ftc.gov/speeches/other/stspch.htm

Coleman,M., Meyer, D., and Scheffman, D.: Empirical Analysis of Potential Competitive Effects of a Horizontal Merger: The FTC's Cruise Ships Mergers Investigation, Review of Industrial Organization, 2003, www.ftc.gov/be/riocruise0703.pdf

Competition Authority: Report of Investigation of the Proposal whereby Unilever Ireland Ltd would acquire the entire issued share capital of Lyons Irish Enterprises Ltd. 1996.

Competition Authority, (1996): Report of Investigation of the Proposal whereby Statoil Ireland Limited would acquire the entire issued share capital of Conoco Ireland Limited, 1996.

Dalkir, S., & F. Warren-Boulton, Prices, Market Definition and the Effects of Merger: Staples-Office Depot (1997), The Antitrust Revolution: Economics, Competition and Policy (Case 2), eds. Kwoka, J. & L. White, pp. 52-72.

Compte, O., Jenny, F. and Rey, P., (2002): Capacity Constraints, Mergers and Collusion, European Economic Review, 46(1): 1-29.

Levy, N., Kimberly-Clark/Scott and the Power of Brands, European Competition Law Review: 1996: 403-10.

Simpson, J.D. and Hosken, D.: Are Retailing Mergers Anticompetitive? An Event Study Analysis, Washington DC: Federal Trade Commission. 1998, www.ftc.gov/be/workpapers/wp216.pdf

Vertical

Competition Authority: Report of Investigation of the Proposal whereby Coillte Teoranta would Acquire the Majority of the Issued Share Capital of Balcas Limited, 1998.

Lecture 2 Term 3

Term 3 Lectures 3&4

Return to Main Menu

Return to Top