In the April 2015 issue of The Antitrust Source, John Woodbury reviews two papers, one theoretical and the other applying the theory, by Jonathan Baker. The papers address the effects on the extent of innovation of antitrust efforts to reduce exclusionary practices by dominant firms. To read the article, click the link below.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...