Department of Justice and Federal Trade Commission|
Single Firm Conduct: Predatory Buying Panel
2006: T.D. MacDonald Chair in Industrial Economics
Competition Bureau, Industry Canada
Permanent: Professor, Public Policy and Economics
University of Maryland, Baltimore County
Senior Fellow, Resources for the Future, Washington, DC
June 22, 2006
- Predation or Exclusion? Pick one or the other.
- Validate necessary assumptions in those rare predatory buying cases.
- For exclusion, first delineate complement market, using HMGs.
- Then, establish price effect from complementary marketmonopolization (CMM).
- Test discounts by effect on complement price, not comparison to cost.
- Predation screens—profit sacrifice, equally efficient competitor,even prior dominance—do not belong in exclusion cases.
- Consider share-based rather than all-or-nothing remedies.
- Focus on creation of new monopolies, not maintenance of old ones.
|Brennan: DOJ/FTC Predatory Buying Panel
||June 22, 2006