CPI 5(2)

This Autumn 2009 issue marks several anniversaries; it is the tenth volume of CPI, the end of our fifth year, and the last issue we will publish in the first decade of the 21st century. From the Editor David Evans, Nov 01, 2009 From the Editor: CPI Autumn 2009 This Autumn 2009 issue marks several […]

Introduction to Harberger’s Monopoly and Resource Allocation–The Pioneering Article on Deadweight Loss and Empirical Measurement of the Social Costs of Monopoly

Hill Wellford, Nov 01, 2009 Arnold Harberger´s 1954 article, Monopoly and Resource Allocation,brought empirical analysis of the social costs of monopoly into the mainstream of antitrust work. In the mid-twentieth century, the dominant mode of monopoly analysis in the United States (and therefore worldwide) was structural rather than empirical, and that structural approach supported a […]

Competition Policy, Bailouts, and the Economic Crisis

Bruce Lyons, Nov 01, 2009 The aims of this paper are twofold. First, I explain the economics of bank bailouts as distinct from bailouts for other sectors of the economy. Why do all the rules of good competition policy appear to fly out of the window when the banks get into trouble? Does this mean […]

Monopoly and Resource Allocation

Arnold Harberger, Arnold Harberger, Nov 01, 2009 This classic 1954 article broke with the then-current economic orthodoxy and set monopoly research on a path that would lead to a strong shift toward empiricism and the development of a more cautious approach for antitrust enforcement. The article is famous for bringing monopoly deadweight loss analysis into […]

The AT&T Case: A Personal View

Thomas Kauper, Thomas Kauper, Nov 01, 2009 The AT&T case, asserting that the company had acted in violation of the antitrust laws and seeking its dissolution, was filed under my direction in 1974, and culminated in a consent decree that brought the largest dissolution in American antitrust history. From the outset the case presented a […]

The Undead? A Comment on Professor Elhauge’s Paper

Paul Seabright, Paul Seabright, Nov 11, 2009 Professor Einer Elhauge has written a paper whose title (Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory) announces its large ambition—to drive a stake through the heart of the Chicago School’s Single Monopoly Profit theory. Perhaps I watch too many scary movies, but even […]

Patent Settlements and Reverse Payments Under EU Law

Marc van der Waude, Marc van der Waude, Nov 01, 2009 The purpose of this contribution is to explore the status types that settlements and reverse payments could have under Article 81 EC. It seeks to identify the elements of the legal tests which could possibly be applied to assess the legality of such settlements […]

Price Discrimination and Welfare

Barry Nalebuff, Nov 01, 2009 Elhauge (2009) provides a wide-ranging article that is impressive both in its clarity and its holistic attack on the practice of bundling and tying. In this commentary, I will focus my attention on one aspect of his presentation, namely the effect of price discrimination via metering and tying on consumer […]

Can Bundled Discounting Increase Consumer Prices Without Excluding Rivals?

Daniel Crane, Joshua Wright, Nov 01, 2009 Since we abhor suspense, we will quickly answer the question our title poses: No. As a general matter, bundled discounting schemes lower prices to consumers unless they are predatory that is to say, unless they exclude rivals and thereby permit the bundled discounter to price free of competitive […]

No Single Monopoly Profit, No Single Policy Prescription?

Harry First, Nov 01, 2009 Professor Einer Elhauge´s most recent article, Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory, begins with a critique of the thrall in which the single monopoly profit theory has held tying law and ends with an affirmation of the current state of the law: The current […]