Economics of Competition Policy [ LECON2372 ]

 Industrial organisation : price and non-price strategies in imperfectly competitive markets under perfect and imperfect information

Goals and instruments of the European competition policy

Economic analysis of art. 101 (collusion and cooperative agreements)

Economic analysis of art. 102 (abuses of dominant positions)

Economic analysis of the merger regulation

Learning outcomes :

- Knowledge of the European competition policy

- Knowledge of the theoretical economic approach of pricing and non-pricing strategies

- Understanding the links between the economic thinking and the evolution in the implementation of competition law, getting an overview of the controversies among competition economist scholars

Competences :

- ability to develop an interdisciplinary approach in analysing abuses of dominant position

- ability to discuss the landmark case law on abuses of dominant position and identify the impact of economic theory on the judicial reasoning.

- ability to transfer economic concepts into practical application to legal cases

- ability to use theoretical economic analysis to criticise the implementation of competition law and to propose improvements

30% for assignments during the semester and 70% for a final written open book exam

 Methodology: confront economic theory with European case law in plenary sessions, case studies presentations and informal discussions on documents published by the competition authorities or on the content of assignments submitted by students

Students are expected to read literature on the different subjects as well as legal cases and/or guidelines documents explaining how the antitrust authority intends to implement the competition policy.

For some classes, students are requested to prepare exercises which are then discussed in class

Class discussion around cases prepared by students is also used for improving their ability to evaluate cases

 Introduction: Goals and instruments of the European competition policy. Is there an optimal set of antitrust rules? What is the contribution of economics to competition policy?

The economics of collusion and cooperative behaviour: Hard core cartels; horizontal and vertical agreements between firms

The economics of mergers: Horizontal, vertical and conglomerate mergers

Abuses of dominant positions: Too high and too low prices; margin squeeze and refusal to deal; discriminatory prices and rebates; tying and bundling

Motta, M., Competition Policy: theory and practice, CUP, 2004

Pepall, Richards and Norman, Industrial organisation: contemporary theory and practice, 1999, South Western College Publishing

O'Donoghue and J. Padilla, The law and economics of art. 82, 2006, Hart Publishing