Antitrust & Competition Policy Blog

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

A Member of the Law Professor Blogs Network

Tuesday, July 14, 2015

Corporate Governance and Cartel formation

Suha Alawi (King Abdulaziz university) has written on Corporate Governance and Cartel formation.

ABSTRACT: This paper examines the relationship between corporate governance and cartel formation, A firm’s participation in cartel depends upon the potential problems that may arise due to price fixing and the incentives provided to the management. The top levels of management such as the board of directors and the CEO are responsible for deciding if the firm will participate in the cartel and manage the corporate governance activities of collusive price fixing agreements. The study is focused on UK cartel firms which has the highest representation in the sample. A total number of 150 cartel firms in 52 cases from all around the world between the years 1990 to 2008 are involved in this study, of which 114 are UK firms. Therefore, this study is dominated by UK firms. The study concludes that UK-based cartel firms characterised by having larger board size compared to non-cartel firms; lower percentage of independent directors (non-executive); higher average of! board remuneration; less likely that cartel is formed by family-owned and controlled firm (large shareholders); having older CEOs represented on the board; having CEO who served a less number of years as a director; less likely to have a female CEO represented; more likely to have CEOs who's combined CEO-chairman position; and a higher average of CEOs bonuses and compensation packages.

July 14, 2015 | Permalink | Comments (0)

Monday, July 13, 2015

From Tirole to the WBG Twin Goals: Scaling up competition policies to reduce poverty and boost shared prosperity

Price competition and reputation in markets for experience goods: An experimental study

Steffen Huck, WZB and University College London, Gabriele K. Lunser Jean-Robert Tyran, University of Vienna and University of Copenhagen examine Price competition and reputation in markets for experience goods: An experimental study.

ABSTRACT:  We experimentally examine the effects of price competition in markets for experience goods where sellers can build up reputations for quality. We compare price competition to monopolistic markets and markets where prices are exogenously fixed (somewhere between the endogenous oligopoly and monopoly prices). While oligopolies benefit consumers regardless of whether prices are fixed or endoge-nously chosen, we find that price competition lowers efficiency as consumers pay too little attention to reputation for quality. This provides empirical support to recent models in behavioral industrial organization that assume that consumers may with increasing complexity of the market place focus on selected dimensions of products. We also find that consumers' attention to quality and, hence, provided quality drops when regulated prices are set at levels that are too low.

July 13, 2015 | Permalink | Comments (1)

Relative profit maximization and the choice of strategic variables in duopoly

Atsuhiro Satoh, Doshisha University & Yasuhito Tanaka, Doshisha University review Relative profit maximization and the choice of strategic variables in duopoly.

ABSTRACT:  We study implications of the choice of strategic variables, price or quantity, by firms in a duopoly with differentiated goods in which each firm maximizes its relative profit. We consider general demand and cost functions, and show that the choice of strategic variables is irrelevant in the sense that the conditions of relative profit maximization for the firms are the same in all situations, and so any combination of strategy choice by the firms constitutes a sub-game perfect equilibrium in a two stage game such that in the first stage the firms choose their strategic variables and in the second stage they determine the values of their strategic variables. We define the relative profit of a firm as the ratio of its profit over the total profit. But, even if we define the relative profit of a firm as the difference between the profits of firms, we can show the same result.

July 13, 2015 | Permalink | Comments (0)

IP and competition law—The Chinese perspective

Natalie Yeung, Slaughter and May offers IP and competition law—The Chinese perspective.

ABSTRACT: Recent case law and enforcement activities in China have begun to shed light on the approach of Chinese courts and competition authorities towards the application of competition law to issues involving intellectual property rights. This article considers these developments against the backdrop of the prevailing European and US practices, with particular focus on standard essential patents and how they relate to the issues of: (i) compulsory licensing; (ii) use of injunctive relief to enforce standard essential patents; (iii) how a FRAND royalty rate should be determined; and (iv) tying or bundling of licences. Although some of the principles applied by the Chinese courts and authorities are broadly in line with those adopted in the European Union and the US, the lack of a clear approach in areas such as compulsory licensing, the concept of ‘willing licensee’ and the determination of FRAND rates serves as a reminder that the regulation of competition and intellectual property laws in China is a comparatively recent endeavour and continues to evolve. The article concludes with a summary of competition enforcement activities in other areas of intellectual property rights and the lessons that businesses should be aware of in China.

July 13, 2015 | Permalink | Comments (0)

Merger Remedies—The Chinese Experience

Ariel Ezrachi, Oxford and Wei Han, Chinese Academy of Social Sciences describe Merger Remedies—The Chinese Experience.

ABSTRACT:  In the relatively short period in which the Ministry of Commerce of China (MOFCOM) has applied the Anti-Monopoly Law it has dealt with a large number of merger notifications against a backdrop of limited experience and enforcement resources. Of particular interest has been MOFCOM’s approach to merger remedies and the perceived difference, compared with other jurisdictions, in the nature and composition of accepted commitments. In this article we explore the relevant legal framework and case law and the composition of remedies used to date under the Chinese regime. We consider the use of behavioural and structural remedies and reflect on their implementations and the challenges they raise. In doing so, we consider the extent to which economic, industrial, and political considerations may have led to the unique composition of merger remedies and the prevalence of behavioural commitments.

July 13, 2015 | Permalink | Comments (0)

Friday, July 10, 2015

IBRAC and Editora Singular Release OVERVIEW OF COMPETITION LAW IN BRAZIL

IBRAC and Editora Singular have published an OVERVIEW OF COMPETITION LAW IN BRAZIL.

July 10, 2015 | Permalink | Comments (0)

Most Downloaded Antitrust Authors of the Last 12 Months

Of the top 100 most downloaded law authors on SSRN, how many of them write in antitrust? See the results below in yellow.

 

Rank        Author          Total New Downloads                # of New Papers                New Downloads per paper                  Total # of Downloads                Total # of Citations                # of Papers                Total Downloads per paper                Author-Level Eigenfactor® Score (x100)               
                  1                Sunstein, Cass R.                                        30,893                                               (1)                       29                                               (8)                      159                                               (70)                                208,231                                                  (3)                              1,291                                                  (6)                               194                                                  (4)                              1,073                                                  (71)                                 4.1565                                                  (18)            
                  2                Kahan, Dan M.                                        19,065                                               (2)                        5                                               (389)                      353                                               (4)                                 96,245                                                  (9)                               306                                                  (54)                                54                                                  (176)                              1,782                                                  (20)                                 2.3870                                                  (27)            
                  3                Solove, Daniel J.                                        18,222                                               (3)                        1                                               (2906)                      444                                               (2)                                231,248                                                  (2)                               141                                                  (127)                                41                                                  (313)                              5,640                                                  (1)                                 0.3421                                                  (194)            
                  4                Lemley, Mark A.                                        15,798                                               (4)                        7                                               (207)                      111                                               (168)                                163,279                                                  (4)                               917                                                  (13)                               142                                                  (7)                              1,150                                                  (59)                                 2.9218                                                  (22)            
                  5                Bebchuk, Lucian A.                                        13,619                                               (5)                        1                                               (2906)                       79                                               (366)                                231,413                                                  (1)                              4,477                                                  (1)                               173                                                  (5)                              1,338                                                  (43)                                11.8736                                                  (3)            
                  6                Kerr, Orin S.                                        12,497                                               (6)                        3                                               (862)                      255                                               (20)                                 90,175                                                  (11)                                64                                                  (301)                                49                                                  (204)                              1,840                                                  (17)                                 0.0816                                                  (725)            
                  7                Leiter, Brian                                        11,675                                               (7)                        8                                               (155)                      198                                               (36)                                104,397                                                  (7)                               104                                                  (185)                                59                                                  (145)                              1,769                                                  (21)                                 0.6210                                                  (89)            
                  8                Black, Bernard S.                                        10,662                                               (8)                        3                                               (862)                       77                                               (394)                                162,262                                                  (5)                              2,503                                                  (3)                               138                                                  (9)                              1,176                                                  (56)                                 4.4457                                                  (14)            
                  9                Posner, Eric A.                                         8,989                                               (9)                        7                                               (207)                       73                                               (444)                                 93,527                                                  (10)                               590                                                  (24)                               123                                                  (15)                               760                                                  (164)                                 4.3786                                                  (15)            
                  10                Guerra-Pujol, Enrique                                         8,704                                               (10)                        5                                               (389)                      272                                               (10)                                 13,927                                                  (300)                                10                                                  (1515)                                32                                                  (552)                               435                                                  (551)                                 0.0042                                                  (2871)            
                  11                Renneboog, Luc                                         8,655                                               (11)                        8                                               (155)                       82                                               (343)                                 98,200                                                  (8)                               912                                                  (14)                               105                                                  (28)                               935                                                  (98)                                 0.4510                                                  (141)            
                  12                Roach, Kent                                         8,217                                               (12)                       11                                               (81)                       75                                               (416)                                 22,488                                                  (135)                                39                                                  (476)                               109                                                  (23)                               206                                                  (1959)                                 0.1992                                                  (325)            
                  13                Waldron, Jeremy                                         8,162                                               (13)                        6                                               (276)                      146                                               (81)                                 47,011                                                  (42)                                84                                                  (234)                                56                                                  (164)                               839                                                  (123)                                 0.5653                                                  (107)            
                  14                Coates, IV, John C.                                         8,103                                               (14)                        6                                               (276)                      184                                               (45)                                 33,622                                                  (72)                               237                                                  (68)                                44                                                  (260)                               764                                                  (160)                                 0.4790                                                  (134)            
                  15                Ramsay, Ian                                         8,031                                               (15)                       19                                               (27)                       59                                               (689)                                 63,361                                                  (21)                               100                                                  (194)                               137                                                  (10)                               462                                                  (478)                                 0.3954                                                  (171)            
                  16                Evans, David S.                                         7,894                                               (16)                        4                                               (568)                       81                                               (353)                                 64,549                                                  (19)                               560                                                  (28)                                98                                                  (34)                               659                                                  (212)                                 8.7014                                                  (5)            
                  17                Wu, Tim                                         7,611                                               (17)               0                                               (6596)                      238                                               (24)                                 59,079                                                  (26)                               128                                                  (147)                                32                                                  (552)                              1,846                                                  (16)                                 0.5117                                                  (127)            
                  18                Bainbridge, Stephen M.                                         7,451                                               (18)                        3                                               (862)                       78                                               (385)                                111,987                                                  (6)                               438                                                  (32)                                96                                                  (36)                              1,167                                                  (58)                                 1.5454                                                  (36)            
                  19                Vermeule, Adrian                                         7,364                                               (19)                        3                                               (862)                       98                                               (239)                                 68,049                                                  (16)                               152                                                  (110)                                75                                                  (82)                               907                                                  (110)                                 0.4278                                                  (154)            
                  20                Forcese, Craig                                         7,157                                               (20)                       13                                               (60)                      193                                               (38)                                  9,360                                                  (506)                                 5                                                  (2327)                                37                                                  (403)                               253                                                  (1432)                                 0.0044                                                  (2840)            
                  21                Cheffins, Brian R.                                         7,117                                               (21)                        7                                               (207)                      106                                               (188)                                 62,065                                                  (23)                               339                                                  (47)                                67                                                  (113)                               926                                                  (101)                                 0.3222                                                  (215)            
                  22                Avi-Yonah, Reuven S.                                         7,066                                               (22)                       10                                               (93)                       79                                               (366)                                 47,187                                                  (41)                                94                                                  (207)                                89                                                  (42)                               530                                                  (336)                                 0.2306                                                  (285)            
                  23                Hovenkamp, Herbert J.                                         7,013                                               (23)                       10                                               (93)                       54                                               (792)                                 61,526                                                  (25)                               135                                                  (133)                               129                                                  (13)                               477                                                  (432)                                 0.3084                                                  (220)            
                  24                Wils, Wouter P.                                         6,675                                               (24)                        2                                               (1547)                      278                                               (8)                                 34,119                                                  (71)                                69                                                  (278)                                24                                                  (991)                              1,422                                                  (36)                                 0.0930                                                  (636)            
                  25                Armour, John                                         6,631                                               (25)                        1                                               (2906)                      151                                               (73)                                 55,347                                                  (30)                               325                                                  (50)                                44                                                  (260)                              1,258                                                  (48)                                 0.4425                                                  (145)            
                  26                Lebovits, Gerald                                         6,414                                               (26)                       19                                               (27)                       26                                               (2425)                                 52,243                                                  (34)                                 1                                                  (4497)                               248                                                  (1)                               211                                                  (1892)                         0                                                  (4197)            
                  27                Braman, Donald                                         6,199                                               (27)               0                                               (6596)                      194                                               (37)                                 51,441                                                  (35)                               165                                                  (104)                                32                                                  (552)                              1,608                                                  (28)                                 2.0475                                                  (30)            
                  28                Richards, Neil M.                                         6,062                                               (28)                        4                                               (568)                      276                                               (9)                                 26,491                                                  (100)                                18                                                  (939)                                22                                                  (1151)                              1,204                                                  (53)                                 0.0282                                                  (1389)            
                  29                Raz, Joseph                                         6,056                                               (29)                        5                                               (389)                      189                                               (41)                                 38,197                                                  (55)                                66                                                  (291)                                32                                                  (552)                              1,194                                                  (54)                                 0.3374                                                  (198)            
                  30                Levit, Nancy                                         6,050                                               (30)                        5                                               (389)                      144                                               (83)                                 40,472                                                  (51)                                28                                                  (644)                                42                                                  (294)                               964                                                  (90)                                 0.0293                                                  (1365)            
                  31                Geradin, Damien                                         5,982                                               (31)                        3                                               (862)                       75                                               (416)                                 57,821                                                  (28)                               144                                                  (120)                                80                                                  (70)                               723                                                  (180)                                 0.2843                                                  (232)            
                  32                Schmitt, Michael N.                                         5,872                                               (32)                       12                                               (68)                       98                                               (239)                                 16,168                                                  (232)                                11                                                  (1410)                                60                                                  (140)                               269                                                  (1304)                                 0.0366                                                  (1215)            
                  33                Rostron, Allen K.                                         5,799                                               (33)               0                                               (6596)                      161                                               (66)                                 36,701                                                  (59)                                10                                                  (1515)                                36                                                  (427)                              1,019                                                  (79)                                 0.1233                                                  (497)            
                  34                Greenleaf, Graham                                         5,729                                               (34)                       21                                               (17)                       39                                               (1364)                                 19,555                                                  (175)                                90                                                  (221)                               148                                                  (6)                               132                                                  (3457)                                 0.0599                                                  (883)            
                  35                Gulati, G. M.                                         5,699                                               (35)                        8                                               (155)                       52                                               (857)                                 63,412                                                  (20)                               241                                                  (65)                               109                                                  (23)                               582                                                  (267)                                 0.5027                                                  (129)            
                  36                Vermeulen, Erik P.                                         5,698                                               (36)                        2                                               (1547)                      158                                               (71)                                 30,931                                                  (79)                                30                                                  (608)                                36                                                  (427)                               859                                                  (118)                                 0.0196                                                  (1672)            
                  37                Craig, Paul P.                                         5,677                                               (37)                        4                                               (568)                      162                                               (64)                                 20,443                                                  (159)                                27                                                  (659)                                35                                                  (462)                               584                                                  (262)                                 0.1380                                                  (450)            
                  38                Kleinbard, Edward D.                                         5,607                                               (38)                        2                                               (1547)                      267                                               (14)                                 18,453                                                  (194)                                20                                                  (867)                                21                                                  (1239)                               879                                                  (115)                                 0.0269                                                  (1421)            
                  39                Kraakman, Reinier H.                                         5,499                                               (39)                        1                                               (2906)                      183                                               (47)                                 66,703                                                  (17)                              1,097                                                  (11)                                30                                                  (637)                              2,223                                                  (10)                                 0.9728                                                  (51)            
                  40                Hopt, Klaus J.                                         5,339                                               (40)                        4                                               (568)                      184                                               (45)                                 48,232                                                  (40)                               125                                                  (153)                                29                                                  (676)                              1,663                                                  (25)                                 0.0598                                                  (885)            
                  41                Walker, Christopher J.                                         5,282                                               (41)                        6                                               (276)                      252                                               (21)                                  9,124                                                  (524)                                 6                                                  (2107)                                21                                                  (1239)                               434                                                  (554)                                 0.0274                                                  (1408)            
                  42                Hansmann, Henry                                         5,276                                               (42)                        1                                               (2906)                      188                                               (42)                                 50,589                                                  (38)                               507                                                  (30)                                28                                                  (714)                              1,807                                                  (18)                                 0.7601                                                  (64)            
                  43                Yu, Peter K.                                         5,191                                               (43)                        9                                               (123)                       59                                               (689)                                 50,981                                                  (36)                               143                                                  (124)                                88                                                  (45)                               579                                                  (271)                                 0.3274                                                  (213)            
                  44                Strine , Leo E.                                         5,183                                               (44)                       19                                               (27)                      167                                               (57)                                 16,818                                                  (223)                                65                                                  (297)                                31                                                  (599)                               543                                                  (317)                                 0.0564                                                  (915)            
                  45                Leal-Arcas, Rafael                                         5,160                                               (45)                       21                                               (17)                       48                                               (974)                                 26,445                                                  (101)                                31                                                  (591)                               108                                                  (25)                               245                                                  (1518)                                 0.0278                                                  (1403)            
                  46                Munir, Muhammad                                         5,141                                               (46)                        7                                               (207)                      107                                               (183)                                 14,422                                                  (283)                                 1                                                  (4497)                                48                                                  (218)                               300                                                  (1073)                         0                                                  (4197)            
                  47                Shaffer, Gregory C.                                         5,133                                               (47)                       13                                               (60)                       67                                               (540)                                 29,540                                                  (83)                               146                                                  (114)                                77                                                  (78)                               384                                                  (701)                                 0.2596                                                  (253)            
                  48                Hoofnagle, Chris J.                                         5,131                                               (48)                        6                                               (276)                      109                                               (176)                                 50,260                                                  (39)                                28                                                  (644)                                47                                                  (227)                              1,069                                                  (72)                                 0.0581                                                  (900)            
                  49                Coffee, John C.                                         5,111                                               (49)                        2                                               (1547)                      160                                               (69)                                 75,283                                                  (14)                              1,136                                                  (8)                                32                                                  (552)                              2,353                                                  (8)                                 2.4053                                                  (26)            
                  50                Alemanno, Alberto                                         5,107                                               (50)                        6                                               (276)                       80                                               (360)                                 24,278                                                  (116)                                13                                                  (1239)                                64                                                  (120)                               379                                                  (715)                                 0.0966                                                  (619)            
                  51                Reynolds, Glenn H.                                         4,896                                               (51)                        3                                               (862)                      104                                               (204)                                 84,195                                                  (12)                                28                                                  (644)                                47                                                  (227)                              1,791                                                  (19)                                 0.1470                                                  (434)            
                  52                McCahery, Joseph A.                                         4,757                                               (52)               0                                               (6596)                      108                                               (178)                                 40,746                                                  (50)                               144                                                  (120)                                44                                                  (260)                               926                                                  (101)                                 0.1343                                                  (460)            
                  53                Tamanaha, Brian Z.                                         4,694                                               (53)                        5                                               (389)                      112                                               (165)                                 39,150                                                  (53)                                81                                                  (247)                                42                                                  (294)                               932                                                  (99)                                 0.5159                                                  (126)            
                  54                Gilson, Ronald J.                                         4,693                                               (54)                        2                                               (1547)                      104                                               (204)                                 61,818                                                  (24)                               765                                                  (19)                                45                                                  (250)                              1,374                                                  (39)                                 1.8699                                                  (31)            
                  55                Backer, Larry C.                                         4,673                                               (55)                        9                                               (123)                       56                                               (748)                                 29,502                                                  (84)                                43                                                  (429)                                83                                                  (61)                               355                                                  (799)                                 0.0090                                                  (2278)            
                  56                Schwarcz, Steven L.                                         4,650                                               (56)                        6                                               (276)                       44                                               (1122)                                 66,177                                                  (18)                               217                                                  (78)                               106                                                  (27)                               624                                                  (236)                                 0.5922                                                  (98)            
                  57                Simkovic, Michael                                         4,511                                               (57)                        3                                               (862)                      174                                               (53)                                 28,133                                                  (91)                                21                                                  (826)                                26                                                  (839)                              1,082                                                  (70)                                 0.0615                                                  (867)            
                  58                Ebner, Noam                                         4,468                                               (58)                        4                                               (568)                      104                                               (204)                                 14,379                                                  (284)                                20                                                  (867)                                43                                                  (276)                               334                                                  (900)                                 0.1581                                                  (411)            
                  59                Leo, Richard A.                                         4,395                                               (59)                        3                                               (862)                       63                                               (616)                                 23,867                                                  (120)                               220                                                  (77)                                70                                                  (104)                               341                                                  (870)                                 0.1961                                                  (336)            
                  60                Parisi, Francesco                                         4,360                                               (60)                        3                                               (862)                       39                                               (1364)                                 68,399                                                  (15)                               369                                                  (42)                               111                                                  (20)                               616                                                  (244)                                 0.7344                                                  (68)            
                  61                Ferrarini, Guido A.                                         4,342                                               (61)                        4                                               (568)                      136                                               (93)                                 31,273                                                  (77)                                68                                                  (283)                                32                                                  (552)                               977                                                  (89)                                 0.0404                                                  (1157)            
                  62                Fried, Jesse M.                                         4,340                                               (62)               0                                               (6596)                      106                                               (188)                                 52,950                                                  (33)                              1,130                                                  (9)                                41                                                  (313)                              1,291                                                  (45)                                 4.3121                                                  (16)            
                  63                Beyer, Gerry W.                                         4,291                                               (63)                        5                                               (389)                       57                                               (727)                                 27,292                                                  (97)                                 5                                                  (2327)                                75                                                  (82)                               364                                                  (761)                         0                                                  (4197)            
                  64                Enriques, Luca                                         4,284                                               (64)                        3                                               (862)                       95                                               (252)                                 35,954                                                  (63)                               241                                                  (65)                                45                                                  (250)                               799                                                  (136)                                 0.2306                                                  (285)            
                  65                Partnoy, Frank                                         4,207                                               (65)                        3                                               (862)                      108                                               (178)                                 62,273                                                  (22)                               434                                                  (33)                                39                                                  (350)                              1,597                                                  (30)                                 0.6399                                                  (86)            
                  66                Chen, James M.         4,189                                               (66)                        9                                               (123)                       34                                               (1694)                                 32,261                                                  (74)                                48                                                  (377)                               123                                                  (15)                               262                                                  (1347)                                 0.0650                                                  (839)            
                  67                Stipanowich, Thomas                                         4,126                                               (67)                        4                                               (568)                      129                                               (110)                                 11,461                                                  (391)                                12                                                  (1316)                                32                                                  (552)                               358                                                  (789)                                 0.0111                                                  (2121)            
                  68                Dixon, Martin J.                                         4,123                                               (68)                       18                                               (35)                       54                                               (792)                                 10,306                                                  (449)                                 1                                                  (4497)                                77                                                  (78)                               134                                                  (3406)                         0                                                  (4197)            
                  69                Anderson, Kenneth                                         4,115                                               (69)                        3                                               (862)                       53                                               (821)                                 35,788                                                  (64)                                27                                                  (659)                                77                                                  (78)                               465                                                  (468)                                 0.0364                                                  (1220)            
                  70                Chafetz, Josh                                         4,093                                               (70)                        2                                               (1547)                      215                                               (29)                                  7,942                                                  (634)                                12                                                  (1316)                                19                                                  (1445)                               418                                                  (588)                         0                                                  (4197)            
                  71                Thomas, Randall S.                                         4,084                                               (71)                        4                                               (568)                       50                                               (907)                                 44,818                                                  (44)                               586                                                  (25)                                81                                                  (64)                               553                                                  (302)                                 0.7476                                                  (67)            
                  72                Solum, Lawrence B.                                         4,071                                               (72)                        3                                               (862)                       68                                               (528)                                 56,658                                                  (29)                               107                                                  (178)                                60                                                  (140)                               944                                                  (95)                                 0.1852                                                  (357)            
                  73                Yoo, Christopher S.                                         4,045                                               (73)                        7                                               (207)                       64                                               (594)                                 29,764                                                  (81)                               118                                                  (163)                                63                                                  (127)                               472                                                  (447)                                 0.4739                                                  (135)            
                  74                d'Aspremont, Jean                                         4,018                                               (74)                        4                                               (568)                       60                                               (667)                                 23,105                                                  (124)                                 1                                                  (4497)                                67                                                  (113)                               345                                                  (848)                         0                                                  (4197)            
                  75                Braverman, Irus                                         3,981                                               (75)                        5                                               (389)                      108                                               (178)                                  7,107                                                  (727)                                18                                                  (939)                                37                                                  (403)                               192                                                  (2184)                                 0.0489                                                  (1016)            
                  76                Dharmapala, Dhammika                                         3,939                                               (76)                        6                                               (276)                       76                                               (405)                                 23,936                                                  (118)                               350                                                  (46)                                52                                                  (182)                               460                                                  (484)                                 0.6821                                                  (76)            
                  77                Ferran, Eilis                                         3,902                                               (77)                        1                                               (2906)                      135                                               (96)                                 26,611                                                  (99)                                38                                                  (491)                                29                                                  (676)                               918                                                  (106)                                 0.1506                                                  (426)            
                  78                Roe, Mark J.                                         3,887                                               (78)                        6                                               (276)                       79                                               (366)                                 44,266                                                  (46)                              1,122                                                  (10)                                49                                                  (204)                               903                                                  (112)                                 1.5356                                                  (37)            
                  79                Siems, Mathias M.                                         3,881                                               (79)                        6                                               (276)                       50                                               (907)                                 38,808                                                  (54)                               278                                                  (61)                                78                                                  (75)                               498                                                  (392)                                 0.1694                                                  (383)            
                  80                Petit, Nicolas                                         3,869                                               (80)                        8                                               (155)                       90                                               (285)                                 19,769                                                  (173)                                15                                                  (1107)                                43                                                  (276)                               460                                                  (484)                                 0.0187                                                  (1705)            
                  81                Ginsburg, Tom                                         3,796                                               (81)                       11                                               (81)                       43                                               (1170)                                 22,694                                                  (131)                               144                                                  (120)                                88                                                  (45)                               258                                                  (1378)                                 0.4166                                                  (162)            
                  82                Donohue, John J.                                         3,788                                               (82)                        2                                               (1547)                      105                                               (198)                                 37,056                                                  (58)                               369                                                  (42)                                36                                                  (427)                              1,029                                                  (76)                                 6.3919                                                  (9)            
                  83                Katz, Daniel M.                                         3,787                                               (83)                        5                                               (389)                      180                                               (49)                                 14,685                                                  (267)                                12                                                  (1316)                                21                                                  (1239)                               699                                                  (188)                                 0.0159                                                  (1847)            
                  84                Ault, Hugh J.                                         3,784                                               (84)               0                                               (6596)                      757                                               (1)                                  6,451                                                  (834)                                10                                                  (1515)                                 5                                                  (6005)                              1,290                                                  (46)                                 0.0563                                                  (920)            
                  85                Carrier, Michael A.                                         3,778                                               (85)                       14                                               (55)                       56                                               (748)                                 22,321                                                  (137)                                44                                                  (416)                                67                                                  (113)                               333                                                  (905)                                 0.0165                                                  (1818)            
                  86                Gordon, Jeffrey N.                                         3,768                                               (86)                        2                                               (1547)                      105                                               (198)                                 34,712                                                  (68)                               206                                                  (81)                                36                                                  (427)                               964                                                  (90)                                 0.2690                                                  (243)            
                  87                Wright, Joshua D.                                         3,766                                               (87)                        6                                               (276)                       55                                               (771)                                 34,678                                                  (69)                                77                                                  (254)                                69                                                  (107)                               503                                                  (383)                                 0.1639                                                  (395)            
                  88                Feldman, Robin                                         3,757                                               (88)                        5                                               (389)                      125                                               (121)                                 12,627                                                  (344)                                13                                                  (1239)                                30                                                  (637)                               421                                                  (580)                                 0.0399                                                  (1169)            
                  89                Calo, Ryan                                         3,723                                               (89)                        1                                               (2906)                      248                                               (22)                                 13,477                                                  (314)                                 2                                                  (3597)                                15                                                  (2040)                               898                                                  (113)                         0                                                  (4197)            
                  90                Elliott, Mark C.                                         3,675                                               (90)                       10                                               (93)                      123                                               (129)                                  7,296                                                  (709)                                 1                                                  (4497)                                30                                                  (637)                               243                                                  (1535)                         0                                                  (4197)            
                  91                Paust, Jordan J.                                         3,655                                               (91)                        6                                               (276)                       42                                               (1213)                                 18,108                                                  (198)                                30                                                  (608)                                88                                                  (45)                               206                                                  (1959)                                 0.0161                                                  (1838)            
                  92                Brophy, Alfred L.                                         3,650                                               (92)                        3                                               (862)                      135                                               (96)                                 11,601                                                  (385)                                 3                                                  (2977)                                27                                                  (766)                               430                                                  (559)                         0                                                  (4197)            
                  93                Millard, Christopher                                         3,637                                               (93)                        3                                               (862)                      260                                               (17)                                 19,223                                                  (179)                                 3                                                  (2977)                                14                                                  (2259)                              1,373                                                  (40)                                 0.0037                                                  (2978)            
                  94                Sokol, D. D.                                         3,632                                               (94)                       10                                               (93)                       74                                               (431)                                 17,297                                                  (213)                                25                                                  (697)                                49                                                  (204)                               353                                                  (811)                                 0.0098                                                  (2217)            
                  95                Calabresi, Steven G.                                         3,620                                               (95)                        4                                               (568)                      139                                               (88)                                 14,002                                                  (297)                                38                                                  (491)                                26                                                  (839)                               539                                                  (323)                                 0.0749                                                  (764)            
                  96                Kochenov, Dimitry                                         3,617                                               (96)                       15                                               (50)                       40                                               (1312)                                 17,668                                                  (206)                                38                                                  (491)                                90                                                  (41)                               196                                                  (2120)                                 0.3128                                                  (217)            
                  97                Chesterman, Simon                                         3,610                                               (97)                        3                                               (862)                       49                                               (941)                                 27,570                                                  (95)                                38                                                  (491)                                73                                                  (91)                               378                                                  (719)                                 0.1273                                                  (483)            
                  98                Schauer, Frederick                                         3,586                                               (98)                        2                                               (1547)                       52                                               (857)                                 30,681                                                  (80)                                93                                                  (210)                                69                                                  (107)                               445                                                  (521)                                 0.4556                                                  (140)            
                  99                Ferrell, Allen                                         3,563                                               (99)                        2                                               (1547)                      115                                               (154)                                 50,921                                                  (37)                               703                                                  (21)                                31                                                  (599)                              1,643                                                  (26)                                 2.6981                                                  (24)            
                  100                Trautman, Lawrence J.                                         3,518                                               (100)                        7                                               (207)                      147                                               (79)                                  8,258                                                  (600)                         0                                                  (6420)                                24                                                  (991)                               344                                                  (858)                         0                                                  (4197)

July 10, 2015 | Permalink | Comments (0)

Regulating abuse of superior bargaining position under the Japanese competition law: an anomaly or a necessity?

Masako Wakui, Rikkyo University and Osaka City University and Thomas K. Cheng, Hong Kong University discuss Regulating abuse of superior bargaining position under the Japanese competition law: an anomaly or a necessity?

ABSTRACT: Abuse of superior bargaining position has long been a controversial area of Japanese competition law. Even though it is by no means unique to Japan—Korea, Taiwan, France, and Germany among others also have similar regulation—Japan’s abuse regulation has tended to attract more attention globally. One of the main sources of controversy for abuse regulation is whether it is consistent with competition law, and whether it serves any useful economic purpose. This article attempts to address this long-standing debate by examining whether abuse regulation is consistent with the various objectives of competition law and other economic rationales. Having determined that these objectives and rationales provide at best tenuous justifications for abuse regulation, or are inconsistent with the Japan Fair Trade Commission’s current enforcement practices, it proceeds to argue that abuse regulation can be best justified as a supplement to deficient contract law enforcement, which many commentators have noted is particularly serious for small- and medium-sized enterprises in Japan.

July 10, 2015 | Permalink | Comments (0)

Call for papers: Fourth Next Generation of Antitrust Scholars Conference at NYU School of Law on Friday, January 22, 2016

The fourth Next Generation of Antitrust Scholars Conference will be held at NYU School of Law on Friday, January 22, 2016. The conference is co-sponsored by NYU School of Law and the American Bar Association -- Section of Antitrust Law.  The purpose of this day-long conference is to provide an opportunity for antitrust/competition law professors who began their full time professorial career in or after September 2008 to present their latest research. Senior antitrust scholars and practitioners in the field will comment on the papers. Papers may be submitted to sokold@law.ufl.edu, which will then be circulated to our panel of referees for review.  The deadline for submission of papers is November 1, 2015. There is a strong preference for work that is unpublished and for which the comments from the conference can be incorporated into the work.

Registration
Free and open to the public. NY CLE credits are available to attendees.

July 10, 2015 | Permalink | Comments (0)

Price discrimination in patent licensing and the application of FRAND

Lizhi Ning, Wuhan University, Shubha Ghosh, University of Wisconsin and Wei Zhou, Wuhan University analyze Price discrimination in patent licensing and the application of FRAND.

ABSTRACT: With the increasing amount of global trade and the accelerating process of economic globalization, the economic entities of the world have reached a consensus on protecting equal trading opportunities—especially through pricing and other trading conditions—to achieve substantially fair global trade transactions. The arrival of the era of the knowledge economy increases the role of intellectual property in manufacture and trade and increases attention to the patent licence systems in many countries. In patent licence practice, licensors grant patent licences with many conditions attached. On the one hand, differential treatment will stimulate competition in the market and bring generous profits to the licensors; on the other hand, excessive differential treatment can seriously affect fair competition in the relevant market and undermine the normal operation of the market economy. Therefore, this article explores the issue of price differential treatment in the practice of patent licensing and reasonable royalty fees or rates under FRAND, in order to provide inspiration for further improvement and development of China’s patent licensing market.

July 10, 2015 | Permalink | Comments (0)

Total SA and Elf Aquitaine SA: A Missed Opportunity to Shed More Light on Joint and Several Liability

Patrick Hubert and Marie-Laure Combet,Clifford Chance discuss Total SA and Elf Aquitaine SA: A Missed Opportunity to Shed More Light on Joint and Several Liability.

ABSTRACT:  By Judgment dated 29 April 2015, the General Court partially confirmed two Commission letters whereby the Commission requested from Total and Elf Aquitaine, on the basis of their joint and several liability with their former subsidiary Arkema, the payment of the difference between the initial fine imposed by the Commission on Arkema in its 2006 Methacrylates cartel decision and the amount of the fine, as reduced in 2011 by the General Court, paid by Arkema.

July 10, 2015 | Permalink | Comments (0)

Thursday, July 9, 2015

Distinguishing Legitimate Price Competition from Unlawful Exclusionary Behaviour: Reconciling and Rationalising the Case-Law

Alison Jones, King's College London – The Dickson Poon School of Law has a new paper on Distinguishing Legitimate Price Competition from Unlawful Exclusionary Behaviour: Reconciling and Rationalising the Case-Law.

ABSTRACT: This paper analyses EU cases on abuse of a dominant position dealing with low cost pricing by a dominant firm to determine: (i) whether they are consistent with each other and the goals underpinning the EU competition laws: (ii) whether any evolution in the case-law can be detected and (iii) what changes can be anticipated in the future and would be desirable to ensure the law’s coherence. In particular, it considers the implications of the judgment of the General Court in Intel which has reignited the debate about the philosophical basis of EU competition law and the question of how ‘abusive’ conduct can or should be identified. The paper concludes that there is a need to rationalise the case law and for the EU Courts to explain more fully the policy underpinning the cases, when it is legitimate to rely on presumptions of illegality in the context of Article 102, how the various types of abuse relate to each other and how case-law under Article 101 can, or should, impact on the development of principles under Article 102. As the Court of Justice will have the opportunity to address many of these issues both in the appeal from the General Court’s judgment in Intel and, prior to that, in the preliminary reference known as Post Danmark II, the paper examines some of the important issues which require assessment in those judgments.

July 9, 2015 | Permalink | Comments (0)

Patent Assertions: Are We Any Closer to Aligning Reward to Contribution?

Fiona M. Scott Morton, Yale School of Management; National Bureau of Economic Research (NBER) and Carl Shapiro, University of California, Berkeley - Haas School of Business ask Patent Assertions: Are We Any Closer to Aligning Reward to Contribution?

ABSTRACT:  The 2011 America Invents Act was the most significant reform to the United States patent system in over fifty years. However, the AIA did not address a number of major problems associated with patent litigation in the United States. In this paper, we provide an economic analysis of post-AIA developments relating to Patent Assertion Entities (PAEs) and Standard-Essential Patents (SEPs). For PAEs and SEPs, we examine the alignment, or lack of alignment, between the rewards provided to patent holders and their social contributions. Our report is mixed. Regarding PAEs, we see significantly improved alignment between rewards and contributions, largely due to a series of rulings by the Supreme Court. Legislation currently under consideration in Congress would further limit certain litigation tactics used by PAEs that generate rewards unrelated to contribution. We also see some notable developments relating to SEPs, especially with the recent reform to the patent policies of the IEEE, a leading Standard-Setting Organization (SSO) and with several recent court decisions clarifying what constitutes a Fair, Reasonable and Non-Discriminatory (FRAND) royalty rate. However, other steps that could better align rewards with contributions on the SEP front have largely stalled out, particularly because other major SSOs do not seem poised to follow the lead of the IEEE. Antitrust enforcement in this area could further improve the alignment of rewards and contributions.

July 9, 2015 | Permalink | Comments (0)

Evaluating the State of Competition and the Welfare Losses in the Greek Manufacturing Sector: An Extended Hall-Roeger Approach

Anthony N. Rezitis, University of Helsinki - Department of Economics and Management and Maria A. Kalantzi, University of Ioannina are Evaluating the State of Competition and the Welfare Losses in the Greek Manufacturing Sector: An Extended Hall-Roeger Approach.

ABSTRACT: This paper extends the Hall-Roeger methodology in order to investigate the market structure and to measure the degree of market power in the Greek manufacturing sector over the period 1984-2007 as a whole and by subsector at the two-digit SIC level. The present paper also estimates the net and the total welfare losses in these market power scenarios. The bootstrap method is applied to assign measures of accuracy to the statistical estimates. The empirical results indicate some degree of market power and thus associated welfare losses for each sub-sector in the Greek manufacturing sector over the period 1984-2007.

July 9, 2015 | Permalink | Comments (0)

Collusion, Blackmail and Whistle-Blowing

Leonardo Felli, LSE and Rafael Hortala-Vallve, LSE, explore Collusion, Blackmail and Whistle-Blowing.

ABSTRACT: Whistle-blowing is usually regarded as a way to identify abuse and wrongdoing on the part of governments and corporations. In this paper we show how, at a micro level, whistle-blowing can be used as a designer tool to prevent opportunistic behavior, that takes the form of collusion or blackmail, on the part of members of a simple hierarchical structure. We focus on a three layered principal-supervisor-agent structure and show how the principal can use whistle-blowing as a way to prevent the supervisor and the agent from colluding to the detriment of the principal. To understand our mechanism we need to explicitly define the penalty a party has to incur for walking away from a collusive agreement. Rewarding whistle-blowing, creates incentives for the uninformed colluding party to walk out of the side deal and report to the principal that collusion took place. This threat clearly reduces the informed party’s incentive to participate in side deals. It also serves as a potential blackmail threat between the colluding parties. However, careful use of whistle-blowing allows the principal to eliminate opportunities for blackmail.

July 9, 2015 | Permalink | Comments (0)

Wednesday, July 8, 2015

Umbrella Pricing and Cartel Damages under EU Competition Law

Jens-Uwe Franck, Ludwig Maximilians University of Munich describes Umbrella Pricing and Cartel Damages under EU Competition Law.

ABSTRACT: This article explores whether cartelists should be liable for losses resulting from umbrella pricing, thereby critically evaluating the ECJ’s judgment in “Kone”. Since the EU legislature did not resolve the question of liability for umbrella pricing, it has to be evaluated in accordance with national law, which must however comply with the principles of equivalence and effectiveness pursuant to Article 4(3) TEU. Therefore and in accordance with the Court’s judgment in “Courage”, the decisive criterion should be the effect a cartelist’s liability for umbrella pricing would have on effective and efficient enforcement of competition law. An analysis based on the standard model of optimal sanctioning reveals the ambivalent effect of such a liability. Thus, in view of opposing risks of systematic over- and under-deterrence and in accordance with the principle of institutional balance, the Court has to leave the EU legislature and the national legislatures, respectively, with the discretion not to provide for compensation in the case of umbrella effects.

July 8, 2015 | Permalink | Comments (0)

Time to Control Judges?

Paul Nihoul, University of Louvain asks Time to Control Judges?

ABSTRACT:  The cartoon characters Asterix and Obelix have not much in common with European competition law. But they teach us a lesson important to remember. In human relationships, things can go sour. People sometimes fight—just like the fisherman and the smith in the valiant remote village located in the heart Brittany, France, and portrayed in the books published by Uderzo and Goscinny. Nowadays, there is, in Europe, another village where things are going sour. That village is Luxembourg.

July 8, 2015 | Permalink | Comments (0)

Consumer Search and Double Marginalization

Maarten Janssen, University of Vienna and Sandro Shelegia, University of Vienna explore Consumer Search and Double Marginalization.

ABSTRACT: The well-known double marginalization problem understates the inefficiencies arising from vertical relations in consumer search markets where consumers are uninformed about the wholesale prices charged by manufacturers to retailers. Consumer search provides a monopoly manufacturer with an additional incentive to increase its price, worsening the double marginalization problem and lowering the manufacturer's profits. Nevertheless, manufacturers in more competitive wholesale markets may not have an incentive to reveal their prices to consumers. We show that retail prices decrease in search cost, and so both industry profits and consumer surplus increase in search cost.

July 8, 2015 | Permalink | Comments (0)

Cartels and the Right to Food: An Analysis of States’ Duties and Options

Tristan Feunteun, analyzes Cartels and the Right to Food: An Analysis of States’ Duties and Options.

ABSTRACT: Hunger has complex causes and can be exacerbated by the actions and/or inactions of various actors, such as states, intergovernmental organizations, and transnational corporations. Globalization has stretched food supply chains worldwide, with an accompanying increase in the harm upon the right to food (RTF) being imposed by extraterritorial parties (whether transnational corporations, foreign states, or intergovernmental organizations). The RTF under international human rights law accommodates the complexities of this, and presents states with a variety of obligations and/or responsibilities within a framework that seeks to respect, protect, and fulfil the RTF. This article will focus on one discrete yet widespread aspect of distortions in agricultural markets and food systems in general, namely collusive price-fixing cartels. The existing literature has largely ignored the nexus of these important issues. First, this article will analyse the (scale of the) effects of such cartels on the RTF. Secondly, it will then examine the respect–protect–fulfil obligations and/or responsibilities of states to regulate such cartels in light of this, embedding the analysis of the problem posed by cartels (and the potential solutions thereto) within this framework. States, with regards to cartels involving transnational corporations in the food sector, have obligations and/or responsibilities to take all appropriate measures to tackle the problem. Such measures include using competition law to regulate the behaviour of transnational corporations and other market participants. Thirdly, this article will examine how competition law and similar mechanisms might yet be developed into effective tools to help states to meet these obligations and/or responsibilities regarding the RTF and to mitigate the effects of cartels upon this, notwithstanding the lack of consensus regarding competition law at the Ministerial Conferences of the World Trade Organization held in Doha and Cancún. This article concludes that hunger in the 21st century is a many-headed monster, and that the RTF obliges all states to assess and adapt all possible tools at their disposal—competition law included—to tackle one particular head of that monster: the impact of cartels on the RTF.

July 8, 2015 | Permalink | Comments (0)