Economics and Competition Law
Oxford, England
30 October 2009
Hosted By: the Centre for Competition Law and Policy, Oxford University
Dr. Mark Williams, Director of European Competition Policy at NERA in London and Brussels, spoke at Oxford University's Centre for Competition Law and Policy on 30 October 2009, and discussed the role of economics in competition law.
Modern competition policy cases increasingly, and correctly, involve a detailed economic analysis of the facts, within broad parameters and principles established by precedent legal cases, and set against the backdrop of a particular market context, with all its particular features.
However, competition law implemented in "literalist" fashion, without a full understanding of the market context and the relevant economics, has a high likelihood of leading to outcomes that are detrimental to competition, economic efficiency, and the public interest, which are the very ends that competition policy is supposed to serve.
After setting out rival schools of antitrust thought, the seminar discussed fundamental concepts in economics of direct relevance to competition law, including market definition, the competitive price, the cellophane fallacy, market power, dominance, concepts of competition on the merits, exclusionary conduct, and anticompetitive foreclosure. The seminar also reviewed these issues in the context of competition cases, both classic and recent, including United Brands, EI Du Pont de Nemours, and BA/Virgin. Finally, there was a discussion of Farrell and Shapiro's "Upward Price Pressure" test to assess the competitive impact of mergers, which by-passes market definition.
Dr. Williams was previously Fellow in Economics at Exeter College, Oxford and taught on the BCL from 1991-1997.
For further information about the Guest Lecture Programme at Oxford University's Centre for Competition Law and Policy, please visit: http://denning.law.ox.ac.uk/competition/visiting.php.
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