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2006

Public Affairs, Public Policy and Public Administration

Predatory pricing

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Full-Text Articles in Law

The Law Of Exclusionary Pricing, Herbert J. Hovenkamp Jan 2006

The Law Of Exclusionary Pricing, Herbert J. Hovenkamp

All Faculty Scholarship

The success of the Areeda-Turner test for predatory pricing and the Supreme Court's adoption of demanding proof requirements in its 1993 Brooke Group decision have made it very difficult for plaintiffs to win conventional predatory pricing claims. While many challenges to exclusionary pricing continue to be made, the legal theory has evolved away from classical predation to a variety of other theories. These include challenges to quantity and market share discounts, single item and package discounts, and various purchasing practices, including slotting fees, overinvestment in fixed cost assets, and overbuying of variable cost inputs. Plaintiffs have enjoyed somewhat greater success …