Antitrust & Competition Policy Blog

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

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Thursday, April 5, 2012

Mergers with Weak Competition: Reflections on FTC v. Lundbeck

Posted by D. Daniel Sokol

Gerg Werden (DOJ) has posted Mergers with Weak Competition: Reflections on FTC v. Lundbeck.

ABSTRACT: In FTC v. Lundbeck, courts rejected a challenge to an acquisition placing under common control the only two drugs for treating a heart defect in newborns. Although the court decisions in the case have been severely criticized, they might well have achieved the right result for the right reason. In a simple model reflecting the weak competition between the drugs found by the courts, duopoly nearly always yields monopoly or near monopoly pricing.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/04/mergers-with-weak-competition-reflections-on-ftc-v-lundbeck.html

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