Antitrust & Competition Policy Blog

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

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Tuesday, August 28, 2012

The Marginal Price Effects of Antitrust Rules Against Price Discrimination

Posted by D. Daniel Sokol

Hans Zenger, Charles River Associates (CRA) explores The Marginal Price Effects of Antitrust Rules Against Price Discrimination.

ABSTRACT: The two central pricing rules contained in most antirust laws are prohibitions of below-cost pricing and prohibitions of discriminatory pricing. This article shows that the rule against discriminatory pricing may actually induce firms to charge exclusionary below-cost prices, even in the complete absence of any predatory intent on the part of firms.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/08/the-marginal-price-effects-of-antitrust-rules-against-price-discrimination.html

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