Abuse of Dominance by Firms Charging Excessive or Unfair Prices: An Assessment

48 Pages Posted: 5 Dec 2016

Date Written: September 11, 2016

Abstract

Competition authorities throughout the world are under pressure to use their enforcement powers to control excessive or unfair prices. In some countries, like the United States, competition authorities have clearly indicated that the antitrust laws were not meant to curb monopolistic prices. In other countries, like the European Union, excessive prices have occasionally been considered to be violations of the competition law. A vigorous debate among economists has taken place on what the definition of excessive prices could be and whether the control of excessive prices by competition authorities would in fact promote or discourage competition. This paper reviews this debate and considers alternative courses of action that competition authorities could consider in case of high prices.

Suggested Citation

Jenny, Frederic, Abuse of Dominance by Firms Charging Excessive or Unfair Prices: An Assessment (September 11, 2016). Available at SSRN: https://ssrn.com/abstract=2880382 or http://dx.doi.org/10.2139/ssrn.2880382

Frederic Jenny (Contact Author)

ESSEC Business School ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France

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