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Federal Antitrust: Section 2
Prof Dan Crane Federal Antitrust. Section 2/Exclusionary Conduct
Terms in this set (20)
selling separate products only in a package
seller sells two products separately but uses its mkt pwr in one of the products to force buyers to purchase a second complementary product as well
difference between bundling and tying
In one, seller sells products ONLY in a package. In the second, seller sells products separately but uses market power in one of the products to make consumers buy the other product.
seller offers the buyer a discount if buyer purchases separate products in a package
contractual practices that require a seller to deal exclusively with a particular buyer or a buyer to deal exclusively with a particular seller
relationship between firms that are competitors, that is produce or sell at the same level of production or distribution
relationship between firms at different levels of production or distribution
describing effects between sellers of different brands
describing effects between sellers of the same brand
pricing below cost in order to exclude competitors and obtain monopoly power
Brooke group test for predatory pricing
requires proof that ∆ priced below an appropriate measure of cost (typically AVC) and had a dangerous probability of recouping the costs of predation through later supracompetitive pricing
predatory strategy by vertically integrated firm that supplies a competitor with an input at wholesale and then prices its own good or service at a retail price that the competitor could not match, given wholesale price of the input
profit sacrifice/no economic sense test
a leading proposed test for ascertaining when conduct is unlawfully exclusionary or rivals. Under the test conduct is exclusionary if it entails a sacrifice of profits that makes no sense, absent a desire to recoup the lost profits through monopoly pricing
recovering costs expended in driving rivals from the market, typically by PP, through later supracompetitive pricing
resale price maintenance
an upstream firm's dictation of price that a downstream firm must use to resell goods sold to the downstream firm by the upstream firm. Typically involves a mfg telling a wholesaler or retailer the prices it must charge for the mfg's goods. Was per se illegal under Dr. Miles. Now judged under RoR post-Leegin.
percentage of the relevant market foreclosed to rivals.
What do you have to consider for substantial foreclosure analysis?
defendant's market share
What do you NOT consider for substantial foreclosure analysis
mfg pays supracompetitive price for inputs to drive up costs of rivals.
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