A PYMNTS Company

The Economics of Loyalty Rebates and Antitrust Law in the United States

 |  October 19, 2006

Bruce Kobayashi, Sep 01, 2006

The courts treatment of loyalty discounts under U.S. antitrust laws is broadly consistent with an approach that recognizes the high costs of erroneously condemning behavior that would lower prices and increase welfare, and the speculative nature of the anticompetitive harm that might result.

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