- Elgar original reference
Edited by Manfred Neumann and Jürgen Weigand
Chapter 10: Assessing potential competition in antitrust markets
Antitrust laws and enforcement actions strive to preserve or enhance competition in markets. Relatively competitive markets are expected to result in lower prices for products and services, which promote consumer welfare. More competitive markets may also lead to increases in efficiency. Efficiency of markets can be related to pure production efficiency, as well as organizational and transactional costs efficiencies. Finally, more competitive markets may result in greater process and product innovations, as firms strive to bring new products and more variety and quality to the markets. It is these likely effects on market prices, growth, efficiencies and innovation that have resulted in antitrust occupying an important place in economic policy. There are three broad areas of antitrust activity: evaluation of mergers; assessment of anti-competitive behavior related to monopolization (dominance); and detecting and busting cartels. In evaluation of mergers, the first task is to define the relevant market, then examine entry conditions and actual and potential competition, and assess market power and efficiencies.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.