HomeAntitrust Chronicle™ 2022Winter 2022, February, Volume 1

Winter 2022, February, Volume 1

Antitrust Chronicle 2022 - Economics of Potential Competition

Antitrust Chronicle™ - Economics of Potential Competition

Potential (as opposed to “actual”) competition is defined, essentially, as a competitive constraint on a given firm’s behavior that might “potentially” arise, but has not done so yet. Modern economic thinking places increasing importance on taking potential competition into account in assessing antitrust issues.

How is potential competition defined? For example, it might be most evident where the entrant poses a threat based on a particularly disruptive innovation, an innovative business model, or access to (or ownership of) specific intellectual property or physical infrastructure that others might lack. In addition, the fact that the potential entrant has infiltrated similar markets before might constitute such evidence. The relative specificity of its ability to clear a high entry hurdle might also be demonstrated if it has already entered while others either have failed, or have yet to try.

In this Issue

In Case You Missed It

January 2022 - I

Antitrust Chronicle - PREDATORY PRICING January 2022

December 2021 - I

Antitrust Chronicle - Retail Grocery Sector - December I 2021

November 2021 - I

Antitrust Chronicle - Corporate Compliance - November I 2021

Chronicles by Year

Most Read Articles

Enable Notifications    OK No thanks