Social and Behavioral Sciences Commons^™

The Legal Periphery Of Dominant Firm Conduct, Herbert J. Hovenkamp

All Faculty Scholarship

This essay explores two different but related problems and how U.S. antitrust law and EU competition law approach them. The first is the offense of attempt to monopolize, which concerns the acts that a firm that is not yet dominant might undertake in order to become dominant. The second is the offense of monopoly or dominant firm leveraging, which occurs when a firm uses its dominant position in one market to cause some kind of harm in a different market where it also does business.

The language of EU and U.S. provisions concerning dominant firms provokes one to think that …

Academic Journal Prices In A Digital Age: A Two-Sided-Market Model, Mark J. Mccabe, Christopher M. Snyder

Dartmouth Scholarship

Digital-age technologies promise to revolutionize the market for academic journals as they have other media. We model journals as intermediaries linking authors with readers in a two-sided market. We use the model to study the division of fees between authors and readers under various market structures, ranging from monopoly to free entry. The results help explain why print journals traditionally obtained most of their revenue from subscription fees. The results raise the possibility that digitization may lead to a proliferation of online journals targeting various author types. The paper contributes to the literature on two-sided markets in its analysis of …

Healthy Competition: What’S Holding Back Health Care And How To Free It, Michael F. Cannon

Michael F. Cannon

No abstract provided.

If Financial Market Competition Is So Intense, Why Are Financial Firm Profits So High? Reflections On The Current ‘Golden Age’ Of Finance, James Crotty

PERI Working Papers

In 1997 former Federal Reserve Board Chairman Paul Volker posed a question about the commercial banking system he said he could not answer. The industry was under more intense competitive pressure than at any time in living memory, Volcker noted, “yet at the same time the industry never has been so profitable.” I refer to the seemingly strange coexistence of intense competition and historically high profit rates in commercial banking as Volcker’s Paradox. In this paper I extend the paradox to all important financial institutions and discuss four developments that together help resolve it. They are: rapid growth in the …