Competition Policy and Price Fixing

2013 ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Competition Policy ◽  
Competition Law ◽  
Direct Approach ◽  
Social Harm ◽  
Systematic Analysis ◽  
Oligopoly Theory ◽  
Different Types ◽  
Error Costs ◽  
Benefits And Costs ◽  
Desirable Behavior

Throughout the world, the rule against price fixing is competition law's most important and least controversial prohibition. Yet there is far less consensus than meets the eye on what constitutes price fixing, and prevalent understandings conflict with the teachings of oligopoly theory that supposedly underlie modern competition policy. This book offers a fresh, in-depth exploration of competition law's horizontal agreement requirement, presents a systematic analysis of how best to address the problem of coordinated oligopolistic price elevation, and compares the resulting direct approach to the orthodox prohibition. The book elaborates the relevant benefits and costs of potential solutions, investigates how coordinated price elevation is best detected in light of the error costs associated with different types of proof, and examines appropriate sanctions. Existing literature devotes remarkably little attention to these key subjects and instead concerns itself with limiting penalties to certain sorts of interfirm communications. Challenging conventional wisdom, the book shows how this circumscribed view is less well grounded in the statutes, principles, and precedents of competition law than is a more direct, functional proscription. More important, by comparison to the communications-based prohibition, the book explains how the direct approach targets situations that involve both greater social harm and less risk of chilling desirable behavior—and is also easier to apply.

Introduction

2013 ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Functional Approach ◽  
Conventional Wisdom ◽  
Direct Approach ◽  
Social Harm ◽  
Systematic Comparison ◽  
Analytical Foundation ◽  
Desirable Behavior ◽  
Straightforward Approach

This chapter summarizes the book's main arguments. It sketches an overview of an analytical foundation for designing policy toward coordinated price elevation in oligopolistic industries, at the same time arguing for a straightforward approach to the issue. Systematic comparison with a more direct, functional approach reveals conventional means to be inferior and in important respects counterproductive in cases without smoking-gun evidence. In those settings, a direct approach dominates the conventionally favored communications-based prohibition in that the former targets situations that involve both greater social harm and less risk of chilling desirable behavior than those most likely to generate liability under the latter. The direct approach is also less difficult to administer, contrary to conventional wisdom.

scholarly journals Better out than in: why barriers to exit matter for competition law and policy

2020 ◽  
Vol 19 (1) ◽  
pp. 42-46
Author(s):  
Matthew Johnson
Keyword(s):  
Market Efficiency ◽  
Competition Policy ◽  
Policy Research ◽  
Competition Law ◽  
State Aid ◽  
Competition Authority ◽  
Competitive Process ◽  
Economic Framework ◽  
Law And Policy ◽  
Different Types

The issue of barriers to exit has been neglected by competition authorities and by competition policy research. This is somewhat surprising as it is a topic which goes to the heart of why competition policy exists; if barriers to exit prevent or delay inefficient firms from leaving the market, then the normal competitive process of driving up market efficiency is hampered. This in turn reduces the benefits to other, more efficient firms, and to customers in terms of lower prices, better quality, etc. This article explores the reasons why, despite the importance of barriers to exit in the economic framework that underpins competition policy, very few competition authority decisions discuss the issue. It considers the approach to barriers to exit in different types of competition investigation, such as merger assessment, Article 101 and 102 TFEU cases, and State aid. The article also considers the scope for cross-disciplinary research and collaboration, such as in the design of insolvency or bankruptcy laws.

Die Spürbarkeit bezweckter und bewirkter Wettbewerbsbeschränkungen

2021 ◽  
Author(s):  
Asja Zorn
Keyword(s):  
Competition Law ◽  
Complex Interaction ◽  
Legal Interpretation ◽  
Systematic Analysis ◽  
Different Types

This work deals with the complex interaction of the key elements of the prohibition on restrictive agreements in European and German competition law. It does not stop at a meta-legal interpretation based on outcome or interests, but develops the foundations of restrictions by object and effect and its appreciability by means of historical and systematic analysis, starting from the teleology of the rules. The consequences for the assessment of different types of agreements are also discussed in detail. It thus provides the user with a sound framework for the application of Art. 101 (1) TFEU and § 1 GWB.

scholarly journals Essays in competition economics and the enforcement of competition policy

2015 ◽  
Author(s):  
Βασιλική Μπαγέρη
Keyword(s):  
Market Power ◽  
Product Differentiation ◽  
Competition Policy ◽  
Competition Law ◽  
Social Harm ◽  
Legal Standards ◽  
Regulatory Authorities ◽  
Key Issues ◽  
Abuse Of Dominance

Economists have been involved a lot in recent years in considering issues of enforcement of Competition law and how enforcement can become more effective, such as legal standards, substantive standards, penalties etc. This dissertation, contributes to the above by examining two important dimensions of the enforcement of Competition law: (i) fines and (ii) the requirement of extant market power in forming a presumption that unilateral firm actions or mergers may lead to social harm. Particularly, we study some key issues concerning the calculation of optimal fines by Competition and Regulatory Authorities (Chapter 2), we introduce a new methodology for setting fines (Chapter 3) and we examine the effects of exclusion in abuse of dominance cases with product differentiation and how they depend on the source of market power (Chapter 4). At the end of each chapter we give the conclusions relating to each of the main essays.

The Role of Evaluative Tools in the Creation of the Memorial Media Portrait of Jacques Chirac (1932—2019)

2020 ◽  
pp. 97-110
Author(s):  
E. N. Mikhailova ◽  
V. A. Telegina
Keyword(s):  
Print Media ◽  
Political Elite ◽  
Systematic Analysis ◽  
Research Material ◽  
Political Orientations ◽  
Different Types ◽  
The Media ◽  
The Creation ◽  
Entire Text

The article is devoted to the study of evaluative tools used in modern French media in order to form the media image of a representative of the political elite. The techniques used in the creation of a memorial media portrait of Jacques Chirac (1932—2019), President of France from 1995 to 2007 are considered. The research material was the most prestigious French print media of various political orientations, published in late September — early October 2019 in connection with the death of the ex-President of the French Republic. The relevance of the research topic is dictated by the close attention of modern linguistics to axiological phenomena, differently presented in different types of discursive practices. The novelty of the study is due to the appeal to the analysis of the complex of evaluation tools used in the French print media when characterizing the former leader of the state during the nation’s farewell period. The estimated potential of the title of the article and its influence on the formation of the estimated vector of the entire text of the publication are shown. A systematic analysis of the assessment expression means, reflected in the memorial media portrait of the politician, is given. The factors that influenced the peculiarities of their use in this type of media portrait are revealed.

DIRECTIONS OF IMPROVEMENT OF RISK MANAGEMENT SYSTEM IN THE FIELD OF LOGISTICS ACTIVITIES

2017 ◽  
Author(s):  
Elena Lytvynenko ◽  
◽  
Taisiya Kozlova ◽  
Keyword(s):  
Risk Management ◽  
Practical Experience ◽  
Logistics System ◽  
Systematic Analysis ◽  
Qualitative And Quantitative ◽  
Different Types ◽  
Rational Management ◽  
Enterprise Logistics ◽  
Risk Acceptability ◽  
Logistics Activity

The changeable and unpredictable development of the enterprises’ external environment is one of the appearance causes of various types of business activities' risks, including logistics. The purpose of this article is to develop recommendations on improving the risk management of enterprises’ logistics activities in the context of instability. Achieving this goal requires consideration of the main stages of this process regarding the logistics activities' risks, providing advices on improving the process of risk management of logistics orientation. The article explores the process of analyzing the logistics activities' risks of the enterprise. Proceeding from the theoretical provisions of management and summarizing the practical experience of research in the field of systematic analysis of the enterprises' logistics activities risks, there are traced the organization's peculiarities of such analysis, and the main directions of its further improvement are proposed. All actions in the article, which are related to the analysis of the risk of enterprise logistics activity, are proposed to carry out in a certain sequence in the article. This sequence is given in the form of a structural scheme of systematic analysis of the risks of the enterprise logistics activities. Based on the objectivity of the existence of logistics activities' risks and the need to ensure the rational management of them, the algorithm of the risk management in the enterprise logistics system covers the stages of risks' identification, their qualitative and quantitative assessment, diagnostics, assessment of risk acceptability and application of neutralization measures to unacceptable logistical risks. It is concluded that the logistics activities risks combine different types of risks of all components and elements both in the process of changing material, financial and information flows, as well as in the process of managing the risks arising in the logistics system

Competition Policy for the New Era

2018 ◽  
Keyword(s):  
Developing Countries ◽  
Emerging Economies ◽  
Competition Policy ◽  
Competition Law ◽  
Critical Discussion ◽  
Industrialized Countries ◽  
Collective Wisdom ◽  
Brics Countries ◽  
Law And Policy ◽  
The World

This book presents a new stage in the contributions of the BRICS countries (Brazil, Russia, India, China, and South Africa) to the development of Competition Law and policy. These countries have significant influence in their respective regions and in the world. The changing global environment means greater political and economic role for the BRICS and other emerging countries. BRICS countries are expected to contribute nearly half of all global gross domestic product growth by 2020. For more than a century, the path of Competition Law has been defined by the developed and industrialized countries of the world. Much later, developing countries and emerging economies came on the scene. They experience many of the old competition problems, but they also experience new problems, and experience even the old problems differently. Where are the fora to talk about Competition Law and policy fit for developing and emerging economies? The contributors in this book are well-known academic and practising economists and lawyers from both developed and developing countries. The chapters begin with a brief introduction of the topic, followed by a critical discussion and a conclusion. Accordingly, each chapter is organized around a central argument made by its author(s) in relation to the issue or case study discussed. These arguments are thoughtful, precise, and very different from each another. Each chapter is written to be a valuable freestanding contribution to our collective wisdom. The set of case studies as a whole helps to build a collection of different perspectives on competition policy.

Concentrations in the Aviation Sector: How to maintain the level playing field for airlines and airports?

2021 ◽  
Vol 24 (3) ◽  
pp. 485-511
Author(s):  
Valentine Lemonnier
Keyword(s):  
Competition Law ◽  
Air Transport ◽  
Transport Sector ◽  
Level Playing Field ◽  
Playing Field ◽  
Market Participants ◽  
Free Competition ◽  
Eu Competition Law ◽  
Different Types ◽  
The Eu

Before the Covid-19 pandemic hit, the scheduled passenger air transport sector was already subject to several horizontal concentrations. The mix of free competition and strict regularization in the air transport sector in the EU raises the question whether the current framework will still be able to provide a level playing field to the market participants, notably airlines and airports. The study focusses on how EU competition law has influenced horizontal concentrations (i.e. mergers and horizontal co-operations) in the scheduled passenger air transport sector. The results of the discussion are the basis for a reflection of the effects of different types of horizontal concentrations on the negotiation power of airlines vis-à-vis airports. A third focus of the study is the identification of regulatory weaknesses with regard to airport financing under the Airport Charges Directive (Directive 2009/12/EC), how those weaknesses benefit airlines and how they might interfere with efforts made under the application of competition law.

scholarly journals The Influence of Economic Theories and Schools on Competition Law in terms of Vertical Agreements

2018 ◽  
Vol 11 (18) ◽  
pp. 153-180
Author(s):  
Zbigniew Jurczyk
Keyword(s):  
Competition Policy ◽  
Evaluation Criteria ◽  
Competition Law ◽  
Chicago School ◽  
Antitrust Law ◽  
Competitive Effects ◽  
Economic Theories ◽  
The Past ◽  
Antitrust Analysis ◽  
Harvard School

The paper aims at showing the influence and the views espoused by economic theories and schools of economics on competition policy embedded in antitrust law and conducted by competition authorities in the field of vertical agreements. The scope of the paper demonstrates how substantially the economization of antitrust law has changed the assessment as to the harmfulness of vertical agreements. The analysis of economic aspects of vertical agreements in antitrust analysis allows one to reveal their pro-competitive effects and benefits, with the consumer being their beneficiary. The basic instrument of the said economization is that antitrust bodies draw on specific economic models and theories that can be employed in their practice. Within the scope of the paper, the author synthesizes the role and influence of those models and schools of economics on the application of competition law in the context of vertical agreements. In presenting, one after another, the theories and schools of economics which used to, or are still dealing with competition policy the author emphasises that in its nature this impact was more or less direct. Some of them remain at the level of general principals and axiology of competition policy, while others, in contrast, delineate concrete evaluation criteria and show how the application of those criteria changes the picture of anti-competitive practices; in other words, why vertical agreements, which in the past used to be considered to restrain competition, are no longer perceived as such. The paper presents the models and recommendations of neoclassical economics, the Harvard School, the Chicago and Post-Chicago School, the ordoliberal school, the Austrian and neoAustrian school as well as the transaction cost theory.

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