Posted by Social Science Research Network
The Relevent Market: Possible and Productive – Gregory J. Werden (US Department of Justice – Antitrust Division)
ABSTRACT: Professor Louis Kaplow capped off his series on the relevant market with a final essay in this the Antitrust Law Journal. His premise remains that relevant market is used only to help assess a firm’s market power based on its market share. He claims: (1) “there exists no valid way to make market power inferences from shares” of a multi-product market; (2) “it is impossible to determine which market definition is superior” in inferring market power “without already formulating one’s best estimate of market power”; and (3) delineating the relevant market is “counterproductive.” This essay demonstrates the relevant market’s utility. It also shows that: (1) Kaplow’s first claim rests on a distorted view of antitrust analysis and faulty economics; (2) Kaplow does not prove his second claim, but rather just that the relevant market is not needed for the purpose he allows for it; and (3) Kaplow’s third claim rests on a misapplication of the hypothetical monopolist test, faulty economics, and erroneous facts.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI