Monday, October 5, 2009
Posted by D. Daniel Sokol
Antonio Nicita (Political Economy- Università di Siena) discusses Consumers Win-back as Exclusionary Conduct. Some Insights for Antitrust Law.
ABSTRACT: Incumbents' winback actions recently received a growing antitrust scrutiny in network industries. These actions refer to incumbents’ strategies aimed at regaining, through targeted marketing and selective discounts, former customers who switched to a new entrant. We analyze the impact of winback actions on competition and discuss pros and cons of a temporarily ban on incumbent's side, through the so-called 'winback rules'.