Topic 1: Market power and market definition

Program 

Introduction to course

Assessing market power

   Academic market power vs. competition policy market   

   power   

   Meaning of effective competition

Defining markets

   Putting market definition in context

   Legal requirement vs. economic value

           Role of market definition outside mergers

   Market definition vs. competitive effects analysis

   Wholesale vs. retail market definitions

 

Reading

Basic textbooks

Motta, M.   2004.   Competition Policy:Theory and Practice   Cambridge University Press (chapters 2 and 3)

 

Bishop, S. and Walker, M.   2002.   The Economics of EC Competition Law   Sweet & Maxwell (second edition) (chapters 1 to 4)

 

Faull, J. and Nikpay, A.   2007.   The EC Law of Competition   Oxford University Press (chapter 1)

 

More advanced textbooks

Cabral, L.   2000. Introduction to Industrial Organisation , MIT Press (2000) (chapters 5, 9, 14, 15)

 

Church, J. and Ware, R. 2000. Industrial Organization: A Strategic Approach McGraw Hill, (chapters 2, 4 and 14)

 

Guidelines

Competition Commission.   2003.   Market investigation references: Competition Commission Guidelines   London

Department of Justice and Federal Trade Commission.   1997   Horizontal Merger Guidelines   Washington

 

Articles

Bresnahan (1989), “Empirical studies of industries with market power”, in Handbook of Industrial Organization, Volume II , Schmalensee and Willig (eds), North Holland.

 

Froeb, Luke and Steven Tschantz, and Gregory Werden, Pass-Through Rates and the Price Effects of Mergers, International Journal of Industrial Organization , 23 (2005) 703-715.

 

Geradin, Hofer, Louis, Petit and Walker (2005), “The concept of dominance”, GCLC Research papers on article 82 EC. July 2005.

NERA.   2001.   “The role of market definition in monopoly and dominance inquiries”   Office of Fair Trading Economic Discussion Paper 2

 

NERA.   2001.   “The role of market definition in monopoly and dominance inquiries”   Office of Fair Trading Economic Discussion Paper 2