Open Access
Subscription Access
Open Access
Subscription Access
Predatory Pricing:Interplay between Law and Economics
Subscribe/Renew Journal
Antitrust regulation is a domain where law and economics interact whereby economics assists in implementation of the law. Various economic theories have been developed to substantiate the need and the basis of antitrust regulation. This paper focuses on predatory pricing as an antitrust violation. When an undertaking has priced its product below cost so as to eliminate competitors, then it is guilty of predatory pricing. The traditional theory of predatory pricing was considered flawed and, therefore, economists developed detailed strategic theories. Although not all theories translate into law, they still provide a basis while deciding the cases on antitrust violation. Jurisdictions like that of the US have accepted the importance of economics in implementation of the law and thereby seek assistance from economic experts while deciding the cases. This paper, therefore, attempts to analyze the development of economic theories vis-a- vis law on predatory pricing.
Subscription
Login to verify subscription
User
Font Size
Information
- ABA Section of Antirust Law (2002), Antitrust Law Developments, Vol. I, ABA Book Publishing.
- AKZO Chemie BV v. Commission, [1993] 5 C.M.L.R. 215.
- Bara, Zoltán (2016), Economic Principles of Predatory (Exclusionary) Pricing in the US and in the EU, available at http://competitio.unideb.hu/wp-content/uploads/2016/03/VIII-1/02_bara_zoltan.pdf, last accessed on 29 October 2018, p. 26-45.
- Bharti Airtel Limited v. Reliance Industries Limited and Another, Case No. 3 of 2017, available at http://www.cci.gov.in/sites/default/files/3%20of%202017.pdf, last accessed on 29 October 2018.
- Bolton, Patrick, Joseph F. Brodley and Michael H. Riordan (2001), Predatory Pricing: Response to Critique and Further Elaboration, Georgetown Law Journal, 89(8): 2495-2529, Also available at https://www0.gsb.columbia.edu/faculty/pbolton/PDFS/predpri.pdf, last accessed on 29 October 2018.
- Brodley, Joseph F. and George A. Hay (1980-81), Predatory Pricing: Competing Economic Theories and the Evolution of Legal Standards, 66 Cornell L. Rev., 738.
- Brooke Group Ltd. v. Brown & Williamson Tobacco Corp, 509 U.S. 209 (1993).
- Cremiux, Pierre-Yves and Aaron C. Yeater (2016), Use and Abuse: The Myth of Divided Antitrust Economics, Global Antitrust Economics: Current Issues in Antitrust and Law & Economics, p. 15-21.
- Deutsche Telekom AG v. Commission of the European Communities, [2008] 5 C.M.L.R. 9.
- Elzinga, Kenneth G. and David E. Mills (1994), Trumping the Areeda-Turner Test: The Recoupment Standard in Brooke Group, 62 Antitrust L.J., 559.
- Elzinga, Kenneth G. and David E. Mills (2001), Predatory Pricing and Strategic Theory, Georgetown Law Journal, 89(8): 2475-2494.
- France Telecom SA v. Commission [2009], 4 C.M.L.R. 25.
- Hay, George A. (1982), The Economics of Predatory Pricing, Antitrust Law Journal, 51(3): 361-374.
- Jones, Alison and Brenda Surfin (2011), EU Competition Law, Oxford University Press.
- MCX Stock Exchange v. National Stock Exchange of India and Ors., 2011 Comp LR 129 (CCI).
- Mittal, D.P. (3rd Ed.), Competition Law and Practice, Taxmann.
- Post Danmark v. Konkurrenceradet, [2015] 5 C.M.L.R. 25.
- Tetra Pak International SA v. Commission, [1997] 4 C.M.L.R. 662.
- Verizon Communications Inc. v. Law Offices of Curtis V. Trinko LLP, 540 U.S. 398 (2004).
- Vickers, John, Competition Policy and Property Rights (February 19, 2010), The Economic Journal, 120(544): 375-392, May 2010, Available at SSRN: http://dx.doi.org/10.1111/j.1468-0297.2010.02360.x, last accessed on 01 December 2019.
- von Hohenbalken, B. and D.S. West (1986), Empirical Tests for Predatory Reputation, Canadian Journal of Economics, 19:160-78.
- Whish, Richard (2003), Competition Law, Lexis Nexis Butterworths.
Abstract Views: 537
PDF Views: 1