Antitrust and Trade Regulation Commons^™

The Three Types Of Collusion: Fixing Prices, Rivals, And Rules, Robert H. Lande, Howard P. Marvel

All Faculty Scholarship

Collusion can profitably be classified into three distinct types. In our classification, "Type I" collusion is the familiar direct agreement among colluding firms (a cartel) to raise prices or, equivalently, restrict output. Alternatively, firms can collude to disadvantage rivals in ways that causes those rivals to cut output. We term this "Type II" collusion. Its indirect effect is an increase in market prices.

A number of important collusion cases neither direct manipulation of prices or output, nor direct attacks on rivals. Examples include Supreme Court cases such as National Society of Professional Engineers v. US, Bates v. State Bar of …

The First Principles Approach To Antitrust, Kodak, And Antitrust At The Millenium, Steven C. Salop

Georgetown Law Faculty Publications and Other Works

In this essay, I reflect on an important contribution to the development of antitrust reasoning and law that arises out of the Supreme Court's decision in Eastman Kodak Co. v. Technical Services, Inc. In particular, I discuss the decision's relationship to what I have termed the "first principles" approach to market power and antitrust. In my view, one reason that Kodak is important is that it does not take a wooden approach in its economic reasoning. Instead, the opinion nimbly applies the basic principles of competitive analysis to a difficult dynamic context. This enables the majority to avoid rigid adherence …

Competitive Effects Of Partial Ownership: Financial Interest And Corporate Control, Steven C. Salop, Daniel P. O'Brien

Georgetown Law Faculty Publications and Other Works

In this article, we set up an economic framework for analyzing the competitive effects of partial ownership interests. We have three main goals. First, we conceptually derive and explain the competitive effects of partial ownership, explaining its key elements and drawing analogies to the key ideas behind the analysis of horizontal mergers. Second, we present a general framework for evaluating the competitive effects of partial ownership that is analogous to, but at the same time recognizes key differences in the standard analysis for evaluating horizontal mergers. Third, we examine several methods of quantifying these competitive effects.