Showing archive for: “Market Definition”
How Should We Measure Competition?
Competition is the driving force behind the success of markets. It’s hard to imagine a thriving market economy without the presence of competitive forces. But how do we actually measure competition? I use the term all the time, but do we actually have a measure of it? This question is more complex than it may ... How Should We Measure Competition?
The Silly Season in Antitrust: The Hermès Case
For six generations, Hermès has epitomized French luxury, making and selling its iconic scarves, belts, jewelry, and, of course, handbags. Some Hermès products, including its Birkin and Kelly bags, are so exclusive that they can’t be bought off the shelf. Customers first have to establish a relationship with the house to purchase these specialty bags. ... The Silly Season in Antitrust: The Hermès Case
Kroger/Albertsons: Is Labor Bargaining Power an Antitrust Harm?
The Federal Trade Commission’s (FTC) recent complaint challenging the proposed merger of the supermarkets Kroger Co. and Albertsons Companies Inc. has important implications for antitrust enforcement in labor markets. Central to the FTC’s case is how it chooses to define the relevant markets, and particularly the commission’s focus on unionized grocery workers. The complaint alleges ... Kroger/Albertsons: Is Labor Bargaining Power an Antitrust Harm?
Are Markups Really SO Bad?
Concentration is a terrible measure of [insert basically anything people actually care about]. Have I said that before? Concentration tells us nothing about market power, efficiency, or whether policy changes can do anything to increase welfare. Economists know that, especially industrial organization (IO) economists. If we want to measure market power for a seller, a better measure is ... Are Markups Really SO Bad?
Antitrust at the Agencies Roundup: The Orphan’s Hypothetical Competitor Edition
Some may refer to this as the Roundup Formerly Known as the FTC Roundup. If you recorded yourself while reading out loud, and your name is Dove, that is what it sounds like when doves sigh. Maybe He Never Said ‘Never’ The U.S. Justice Department’s (DOJ) Antitrust Division recently agreed to settle its challenge of Swedish conglomerate ... Antitrust at the Agencies Roundup: The Orphan’s Hypothetical Competitor Edition
Untangling the 9th Circuit’s Ruling in Epic Games v Apple
The 9th U.S. Circuit Court of Appeals ruled late last month on Epic Games’ appeal of the decision rendered in 2021 by the U.S. District Court for the Northern District of California in Epic Games v Apple, affirming in part and reversing in part the district court’s judgment. In the original case, Epic had challenged as a violation ... Untangling the 9th Circuit’s Ruling in Epic Games v Apple
Biweekly FTC Roundup: Antitrust Woodstock Edition
Last week’s roundup was postponed because I was kibbitzing at the spring meeting of the American Bar Association (ABA) Antitrust Section. For those outside the antitrust world, the spring meeting is the annual antitrust version of Woodstock. For those inside the antitrust world: Antitrust Woodstock is not really a thing. At the planetary-orbit level, the ... Biweekly FTC Roundup: Antitrust Woodstock Edition
Biweekly FTC Roundup: Total Drama Island Edition
In a Feb. 14 column in the Wall Street Journal, Commissioner Christine Wilson announced her intent to resign her position on the Federal Trade Commission (FTC). For those curious to know why, she beat you to the punch in the title and subtitle of her column: “Why I’m Resigning as an FTC Commissioner: Lina Khan’s ... Biweekly FTC Roundup: Total Drama Island Edition
Is Market Concentration Actually Rising?
Everyone is worried about growing concentration in U.S. markets. President Joe Biden’s July 2021 executive order on competition begins with the assertion that “excessive market concentration threatens basic economic liberties, democratic accountability, and the welfare of workers, farmers, small businesses, startups, and consumers.” No word on the threat of concentration to baby puppies, but the ... Is Market Concentration Actually Rising?
Patent Pools, Innovation, and Antitrust Policy
Late last month, 25 former judges and government officials, legal academics and economists who are experts in antitrust and intellectual property law submitted a letter to Assistant Attorney General Jonathan Kanter in support of the U.S. Justice Department’s (DOJ) July 2020 Avanci business-review letter (ABRL) dealing with patent pools. The pro-Avanci letter was offered in ... Patent Pools, Innovation, and Antitrust Policy
Are All Mergers Inherently Anticompetitive?
A recent viral video captures a prevailing sentiment in certain corners of social media, and among some competition scholars, about how mergers supposedly work in the real world: firms start competing on price, one firm loses out, that firm agrees to sell itself to the other firm and, finally, prices are jacked up.(Warning: Keep the ... Are All Mergers Inherently Anticompetitive?
The Bitter Fruits of Federal Antitrust ‘Reform’ Legislation
Much ink has been spilled regarding the potential harm to the economy and to the rule of law that could stem from enactment of the primary federal antitrust legislative proposal, the American Innovation and Choice Online Act (AICOA) (see here). AICOA proponents, of course, would beg to differ, emphasizing the purported procompetitive benefits of limiting ... The Bitter Fruits of Federal Antitrust ‘Reform’ Legislation
