Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Tuesday, May 25, 2010

Advertised Meeting-the-Competition Clauses: Collusion Instead of Price Discrimination

Posted by D. Daniel Sokol

Oliver Budzinski (Department of Environmental and Business Economics, University of Southern Denmark) and
J├╝rgen-Peter Kretschmer (Economic Policy Unit, Philipps-University of Marburg, Germany) discuss Advertised Meeting-the-Competition Clauses: Collusion Instead of Price Discrimination.

ABSTRACT: Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial model scenario with differently informed consumers that MCCs primarily serve as a device to facilitate collu-sion instead of allowing for price discrimination between these consumers.

http://lawprofessors.typepad.com/antitrustprof_blog/2010/05/advertised-meetingthecompetition-clauses-collusion-instead-of-price-discrimination.html

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