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University of Missouri School of Law

Antitrust and Trade Regulation

Bundled discounting

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Full-Text Articles in Law

Evaluating Bundled Discounts, Thom Lambert Jan 2005

Evaluating Bundled Discounts, Thom Lambert

Faculty Publications

This article identifies and critiques five attempts courts and commentators have made at articulating such an evaluative approach and, finding each approach lacking, proposes an alternative evaluative approach. The proposed approach would presume the legality of above-cost bundled discounts but would permit that presumption to be rebutted by a plaintiff that proved certain facts demonstrating that it had fully exhausted its competitive options and was, or was likely to become, as efficient as the discounter. The recommended approach would be easily administrable and would include clear safe harbors to ensure that procompetitive bundled discounting is not discouraged.