Brief for Amici Curiae John M. Connor, Martin Gaynor, Daniel Mcfadden, Roger Noll, Jeffrey M. Perloff, Joseph A. Stiglitz, Lawrence J. White, and Ralph A. Winter in Support of Petitioners; In the Supreme Court of the United States; States of Ohio, Connecticut, Idaho, Illinois, Iowa, Maryland, Michigan, Montana, Rhode Island, Utah, and Vermont, Petitioners v. American Express Company, and American Express Travel Related Services Company, Inc., Respondents.

32 Pages Posted: 12 Dec 2018

See all articles by John M. Connor

John M. Connor

Purdue University; American Antitrust Institute (AAI)

Martin Gaynor

Carnegie Mellon University; National Bureau of Economic Research (NBER); Leverhulme Centre for Market and Public Organisation

Daniel L. McFadden

University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER)

Roger G. Noll

Stanford University - Department of Economics

Jeffrey M. Perloff

University of California, Berkeley - Department of Agricultural & Resource Economics

Joseph E. Stiglitz

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Lawrence J. White

New York University (NYU) - Leonard N. Stern School of Business, Department of Economics

Ralph A. Winter

University of British Columbia (UBC) - Division of Finance

Date Written: July 6, 2017

Abstract

The court erred by: (1) assuming that that the characterization of the Amex service as a two-sided platform should fundamentally change the antitrust principles that govern the Amex restraints, (2) misunderstanding the nature of competition in two-sided markets, (3) placing the burden on plaintiffs to disprove that the harm from supracompetitive merchant fees are not outweighed by benefits to third parties (cardholders in this case), and most importantly (4) disregarding the critical antitrust issue – the impacts of the Amex merchant anti-steering and pricing restraints on competition among credit card platforms.

Keywords: Antitrust, Competition, Two-sided markets

JEL Classification: L4, L41, L1, L12

Suggested Citation

Connor, John M. and Gaynor, Martin and McFadden, Daniel L. and Noll, Roger G. and Perloff, Jeffrey M. and Stiglitz, Joseph E. and White, Lawrence J. and Winter, Ralph A., Brief for Amici Curiae John M. Connor, Martin Gaynor, Daniel Mcfadden, Roger Noll, Jeffrey M. Perloff, Joseph A. Stiglitz, Lawrence J. White, and Ralph A. Winter in Support of Petitioners; In the Supreme Court of the United States; States of Ohio, Connecticut, Idaho, Illinois, Iowa, Maryland, Michigan, Montana, Rhode Island, Utah, and Vermont, Petitioners v. American Express Company, and American Express Travel Related Services Company, Inc., Respondents. (July 6, 2017). Available at SSRN: https://ssrn.com/abstract=3287799 or http://dx.doi.org/10.2139/ssrn.3287799

John M. Connor

Purdue University ( email )

333 Massachusetts Ave.
UNIT 505
Indianapolis, IN 46204
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+1 463-221-1692 (Phone)

American Antitrust Institute (AAI) ( email )

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Suite 1100
Washington, DC 20036
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202-536-3408 (Phone)

HOME PAGE: http://www.antitrustinstitute.com

Martin Gaynor (Contact Author)

Carnegie Mellon University ( email )

H. John Heinz III School of Public Policy
and Management
Pittsburgh, PA 15213-3890
United States
412-268-7933 (Phone)
412-268-5338 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Leverhulme Centre for Market and Public Organisation

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Bristol BS8 1TN
United Kingdom

Daniel L. McFadden

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Roger G. Noll

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States
650-723-2297 (Phone)
650-725-5702 (Fax)

Jeffrey M. Perloff

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

207 Giannini Hall
Berkeley, CA 94720
United States
510-642-9574 (Phone)
510-643-8911 (Fax)

HOME PAGE: http://are.berkeley.edu/~perloff

Joseph E. Stiglitz

Columbia Business School - Finance and Economics ( email )

3022 Broadway
814 Uris Hall
New York, NY 10027
United States
(212) 854-0671 (Phone)
(212) 662-8474 (Fax)

HOME PAGE: http://www.josephstiglitz.com

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Lawrence J. White

New York University (NYU) - Leonard N. Stern School of Business, Department of Economics ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Ralph A. Winter

University of British Columbia (UBC) - Division of Finance ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada
604-822-8339 (Phone)
604-822-8377 (Fax)

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