Economics for Competition Lawyers 3e (3rd Edition)
Gunnar Niels et al.
Published:
2023
Online ISBN:
9780191926143
Print ISBN:
9780198851332
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Economics for Competition Lawyers 3e (3rd Edition)
Gunnar Niels et al.
Chapter
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Gunnar Niels,
Helen Jenkins,
James Kavanagh
Pages
19–88
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Published:
August 2023
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Niels, Gunnar, Helen Jenkins, and James Kavanagh, 'The Competition Economics Toolkit', Economics for Competition Lawyers 3e, 3rd Edition (2023; online edn, Oxford Academic), https://doi.org/10.1093/law-ocl/9780198851332.003.0002, accessed 19 Aug. 2024.
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Abstract
This chapter sets out basic economic concepts and tools used in competition law. This starts with supply and demand, which provide a surprising amount of insight into how competition works. It then turns to the theory of oligopoly, which lies at the heart of mergers, cartels, and exclusionary conduct, and is based on game theory. Next it discusses network effects, which matter for online platform markets, and behavioural economics, which builds on ideas from psychology to explain economic decision-making by consumers, in particular in the presence of consumer biases. Finally, the toolkit covers regression analysis, used for measuring the effects of a cartel or a merger.
Keywords: Cartels, Exclusionary abuse, Market power, Oligopoly, Merger control, State and competition law
Subject
Economics Competition Law EU Law Mergers and Acquisitions
Collection: Oxford Competition Law
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