Public Workshop: Conditional Pricing Practices

Workshop Information

On June 23, 2014, the Antitrust Division of the Department of Justice and the Federal Trade Commission (FTC) held a one-day public workshop to explore the economics and legal policy implications of certain pricing practices, such as loyalty and bundled pricing.

The workshop, which consisted of presentations and roundtable discussions, focused on practices in which prices are explicitly or effectively contingent on commitments to purchase or sell a specified share or volume of a single product or a mix of multiple products. Workshop participants considered theoretical and empirical developments in the economic understanding of these practices, discussed developments in the relevant case law, and assessed the implications for the proper treatment of these practices under the antitrust laws.

This page provides information on:

Our site includes presentation slides and links to the event transcript, recorded webcasts, and biographies of the speakers.

Press release: Department of Justice and Federal Trade Commission to Hold Workshop on Conditional Pricing Practices (May 6, 2014)

Press release: Department of Justice and Federal Trade Commission Announce Agenda for June 23, 2014, Joint Agency Workshop on Conditional Pricing Practices (June 4, 2014)

Press release: Department of Justice and Federal Trade Commission Extend Public Comment Period for Workshop on Conditional Pricing Practices - Comment Period Extended to Sept. 22, 2014 (July 30, 2014)

For more information, please e-mail CPPworkshop@ftc.gov.


Date and Location

Date: Monday, June 23, 2014
8:30 a.m. to 6:00 p.m.
Location: Federal Trade Commission
(Ground Floor) Conference Center
Constitution Center
400 Seventh Street SW
Washington, DC 20024

Workshop Agenda

June 23, 2014

 

The FTC’s website contains webcast videos and a transcript of the workshop.

8:30 a.m.–
8:45 a.m.

Welcome and Introduction

Welcome Remarks

William J. Baer, Assistant Attorney General, Antitrust Division, U.S. Department of Justice

Introduction

Maureen K. Ohlhausen, Commissioner, Federal Trade Commission

8:45 a.m.–
9:30 a.m.

Overview of the Economics of Conditional Pricing Practices

Presenters

Michael Waldman, Charles H. Dyson Professor of Management and Professor of Economics, Samuel Curtis Johnson Graduate School of Management, Cornell University, and

Michael Whinston, Professor of Economics, Sloan Fellows Professor of Management, Department of Economics and Sloan School of Management, Massachusetts Institute of Technology

9:30 a.m.–
10:45 a.m.

The Economics of Conditional Pricing Practices

Presenters

Timothy J. Brennan, Professor of Public Policy and Economics, University of Maryland, Baltimore County

Benjamin Klein, Professor of Economics, University of California, Los Angeles

Michael A. Salinger, Jacqueline J. and Arthur S. Bahr Professorship in Management, School of Management, Boston University

Abraham L. Wickelgren, Bernard J. Ward Centennial Professor of Law and Economics, University of Texas Law School

Discussants

Randal Heeb, Partner, Bates White

Francine Lafontaine, William Davidson Professor of Business Economics and Public Policy, Stephen M. Ross School of Business, University of Michigan

Moderators

Patrick DeGraba, Economist, Bureau of Economics, Federal Trade Commission

Patrick Greenlee, Economist, Economic Analysis Group, Antitrust Division, U.S. Department of Justice

10:45 a.m.–
11:00 a.m.

Break

11:00 a.m.–
12:15 p.m.

The Economics of Conditional Pricing Practices, Continued

Presenters

Kusum Ailawadi, Charles Jordan 1911 TU’12 Professor of Marketing, Tuck School of Business, Dartmouth College

Miguel de la Mano, Head of Economic Analysis of Financial Markets, European Commission

Joseph Farrell, Professor of Economics, Affiliated Professor, Haas School of Business, University of California, Berkeley

Julie Holland Mortimer, Associate Professor of Economics, Boston College, Faculty Research Fellow, National Bureau of Economic Research

Discussants

Matthew Bennett, Vice President, Charles River Associates, London

C. Scott Hemphill, Professor of Law, Columbia Law School

Moderators

Michael G. Vita, Deputy Director for Research and Management, Bureau of Economics, Federal Trade Commission

Matthew C. Mandelberg, Attorney, Legal Policy Section, Antitrust Division, U.S. Department of Justice

12:15 p.m.–
1:15 p.m.

Lunch

1:15 p.m.–
2:00 p.m.

Roundtable Discussion on the Economics of Conditional Pricing Practices

Matthew Bennett, Vice President, Charles River Associates, London

Benjamin Klein, Professor of Economics, University of California, Los Angeles

Francine Lafontaine, William Davidson Professor of Business Economics and Public Policy, Stephen M. Ross School of Business, University of Michigan

Julie Holland Mortimer, Associate Professor of Economics, Boston College, Faculty Research Fellow, National Bureau of Economic Research

Michael Waldman, Charles H. Dyson Professor of Management and Professor of Economics, Samuel Curtis Johnson Graduate School of Management, Cornell University

Moderators

Daniel P. O’Brien, Senior Economic Policy Advisor, Bureau of Economics, Federal Trade Commission

Patrick Greenlee, Economist, Economic Analysis Group, Antitrust Division, U.S. Department of Justice

2:00 p.m.–
2:30 p.m.

Integrating the Economics of Exclusion with Current Legal Policy: Two Paradigms

Presenter

Steven C. Salop, Professor of Economics and Law, Georgetown University Law Center

2:30 p.m.–
3:30 p.m.

The Law of Conditional Pricing Practices

Presenters

Daniel A. Crane, Associate Dean for Faculty and Research, Frederick Paul Furth, Sr. Professor of Law, University of Michigan Law School, Counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP

Einer R. Elhauge, Carroll and Milton Petrie Professor of Law, Harvard Law School

Randal Heeb, Partner, Bates White

Robert O’Donoghue, Barrister, Brick Court Chambers, London

Discussants

Richard Brunell, General Counsel, American Antitrust Institute

Willard K. Tom, Partner, Morgan, Lewis & Bockius LLP

Moderators

Michael J. Bloom, Assistant Director, Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission

Robert A. Potter, Chief, Legal Policy Section, Antitrust Division, U.S. Department of Justice

3:30 p.m.–
3:45 p.m.

Break

3:45 p.m.–
4:45 p.m.

The Law of Conditional Pricing Practices, Continued

Presenters

Leah Brannon, Partner, Cleary Gottlieb Steen & Hamilton, LLP

Sean P. Gates, Partner, Morrison & Foerster LLP

Jonathan Jacobson, Partner, Wilson Sonsini Goodrich & Rosati

Fiona M. Scott Morton, Professor of Economics, Yale University School of Management

Discussants

Steven C. Salop, Professor of Economics and Law, Georgetown University Law Center

Abraham L. Wickelgren, Bernard J. Ward Centennial Professor of Law and Economics, University of Texas Law School

Moderators

Andrea E. Zach, Attorney, Bureau of Competition, Federal Trade Commission

Samuel N. Weinstein, Attorney, Legal Policy Section, Antitrust Division, U.S. Department of Justice

4:45 p.m.–
5:45 p.m.

Where Do We Go From Here: Open Questions and Policy Considerations

Jonathan Baker, Professor of Law, American University, Washington College of Law

Daniel A. Crane, Associate Dean for Faculty and Research, Frederick Paul Furth, Sr. Professor of Law, University of Michigan Law School, Counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP

C. Scott Hemphill, Professor of Law, Columbia Law School

Fiona M. Scott Morton, Professor of Economics, Yale University School of Management

Richard M. Steuer, Partner, Mayer Brown

Michael Whinston, Professor of Economics, Sloan Fellows Professor of Management, Department of Economics and Sloan School of Management, Massachusetts Institute of Technology

Moderators

Deborah L. Feinstein, Director, Bureau of Competition, Federal Trade Commission

Renata B. Hesse, Deputy Assistant Attorney General for Criminal and Civil Operations, Antitrust Division, U.S. Department of Justice

5:45 p.m.–
6:00 p.m.

Closing Remarks

Andrew I. Gavil, Director, Office of Policy Planning, Federal Trade Commission

Robert A. Potter, Chief, Legal Policy Section, Antitrust Division, U.S. Department of Justice

The views expressed at the workshop do not necessarily reflect those of the U.S. Department of Justice or the Federal Trade Commission.


Public Comments

The Department of Justice and the FTC welcomed written comments from the public. The deadline for submitting public comments was September 22, 2014.

CPPW-0001 Donna Marie Johnson

CPPW-0002 Alan Weinschel

CPPW-0003 Nicholas Economides

CPPW-0004 Richard Steuer

CPPW-0005 Christopher Gildemeister

CPPW-0006 Robinson

CPPW-0007 Anonymous

CPPW-0008 Maritza Iliana Núñez Osorio (ICAM)

CPPW-0009 Richard Brunell (American Antitrust Institute)

CPPW-0010 Sean Heather (U.S. Chamber of Commerce)

CPPW-0011 Timothy Cornell (Clifford Chance)

CPPW-0012 Joseph Farrell (University of California)

Updated August 5, 2015