The Competition Economics Toolkit (2024)

Economics for Competition Lawyers 3e (3rd Edition)

Gunnar Niels et al.

Published:

2023

Online ISBN:

9780191926143

Print ISBN:

9780198851332

Contents

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Economics for Competition Lawyers 3e (3rd Edition)

Gunnar Niels et al.

Chapter

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Gunnar Niels,

Gunnar Niels

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Helen Jenkins,

Helen Jenkins

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James Kavanagh

James Kavanagh

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Pages

19–88

  • Published:

    August 2023

Cite

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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