Antitrust & Competition Policy Blog

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

Monday, November 15, 2010

Competition and cost pass-through in differentiated oligopolies

Posted by D. Daniel Sokol

Iñaki Aguirre (Departamento de Fundamentos del Análisis Económico I, University of the Basque Country), Simon Cowan (Department of Economics, University of Oxford), and John Vickers (All Souls, University of Oxford) analyze Competition and cost pass-through in differentiated oligopolies.

ABSTRACT: This paper presents a general analysis of the effects of monopolistic third-degree price discrimination on welfare and output when all markets are served. Sufficient conditions — involving straightforward comparisons of the curvatures of the direct and inverse demand functions in the different markets — are presented for discrimination to have negative or positive effects on social welfare and output.

November 15, 2010 | Permalink | Comments (0) | TrackBack (0)

Horizontal mergers with synergies: first-price vs. profit-share auction

Posted by D. Daniel Sokol

Wei Ding (University of Bonn), Cuihong Fan (Shanghai University of Finance and Economics), Elmar G. Wolfstetter (Humboldt University of Berlin) address Horizontal mergers with synergies: first-price vs. profit-share auction.

ABSTRACT: We consider takeover bidding in a Cournot oligopoly when firms have private information concerning the synergy effect of merging with a takeover target. Two auction rules are considered: standard first-price and profit-share auctions, supplemented by entry fees. Since non-merged firms benefit from a merger if the synergies are low, bidders are subject to a positive externality. Nevertheless, pooling does not occur; and the profit-share auction is strictly more profitable than the first-price auction, regardless of whether firms observe the synergy parameter or only the winning bid before they play the oligopoly game.

November 15, 2010 | Permalink | Comments (0) | TrackBack (0)

Sunday, November 14, 2010

UK competition law in an evolving landscape

Posted by D. Daniel Sokol

Following on from the planned OFT and Competition Commission merger, the UK should expect a more pro-active and tougher competition policy.

Join us to discuss this and other key competition law developments in the UK over the past twelve months at IBC Legal’s 10th anniversary UK Competition Law conference:


Taking place on the 17th February in London, highlights include:

      - A legal update

      - The Office of Fair Trading and Competition Commission merger

      - Civil & criminal investigations

      - The enforcement of UK competition law 

      - Competition litigation

      - The OFT’s priorities and policies

      - IP & competition law issues

      - Joint CC/OFT guidelines on mergers

      - Public procurement issues

      - Recent case law including Tobacco, Lybe, Reckitt Benckiser, National Grid, Cooper Tire and Enron

      - Merger activities including Zipcar/Streetcar, Ryanair/Aer Lingus and NewsCorp/BSkyB


** Save £200, book by 3rd December.  Use VIP Code: CRZNRDQ when registering


Visit the website:


Download the latest agenda:


Benefit from the combined expertise of:

      - Nicholas Green QC, Brick Court Chambers (Chairman)

      - Ali Nikpay, Senior Director Cartels & Criminal Enforcement, Office of Fair Trading

      - Sheldon Mills, Director of Mergers, Office of Fair Trading

      - Michael Bowsher QC, Monckton Chambers

      - Euan Burrows, Partner, Ashurst LLP

      - Brian Kennelly, Barrister, Blackstone Chambers

      - Peter Willis, Partner, Head of EU & Competition, Dundas & Wilson LLP

      - Simon Pritchard, Partner, Allen & Overy LLP

      - Stephen Kon, Partner, SJ Berwin LLP

      - Dr Helen Jenkins, Managing Director, Oxera

      - Jon Lawrence, Partner, Freshfields Bruckhaus Deringer LLP


Don’t forget - book by 3rd December to save £200. Register or find out more today by:


      - Visiting the website:


      - Emailing IBC Legal:


      - Calling: + 44 (0) 20 7017 5503


When registering quote VIP Code: CRZNRDQ

November 14, 2010 | Permalink | Comments (0) | TrackBack (0)