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Here below you find the most read articles on over the last week.
BRUSSELS — The highest court in the European Union ruled on Wednesday that Intel’s $1.3 billion antitrust fine get a second look, a decision that could ease some of the legal pressure that American tech giants face in the region. Read More.
FLORENCE (Reuters) - The initial findings of Germany’s investigation of U.S. social network company Facebook over possible market abuse will be announced by the end of the year, the country’s cartel office said on Friday. Read More.
The Court of Justice sets aside the judgment of the General Court. Read More.
There was a lot of hype about the appeal judgment in Intel. It proved to be justified. The Court of Justice has set aside the ruling of the GC, and it has done so on the issues that have proved to be more controversial in the past few years: the question of whether, and to what extent, it is necessary to evaluate the effects of a system of loyalty rebates on competition. Read More.
Daniel P. O'Brien
Price-concentration studies have a long history empirical industrial organization, including prominent recent examples. Although their robustness has been questioned for many years, a casual review of the literature leaves the impression that the main issue is the endogeneity of the concentration measure, and that once this is addressed, the problem is solved. This perspective ignores the bigger issue: the equations estimated in most price-concentration studies lack an economic foundation. Critiques in Economic Handbooks allude to the foundational issue, but the IO literature has not explored it in depth or discussed the implications for interpreting empirical results. This paper boils the problem down to the core issue, tackles interpretation, and discusses the way forward. Read More.
Pauline Kennedy, Daniel P. O'Brien, Minjae Song and Keith Waehrer.
A large fraction of US public stock is held by institutional investors that frequently hold shares in multiple firms in the same industry ("common ownership''). Concerns have been raised that common ownership might harm competition if it confers influence over important strategic decisions. Using data from the airline industry, we estimate the effects of common ownership on airline prices using price regressions and a structural oligopoly model consistent with the theory of partial ownership proposed in O'Brien and Salop (2000). Contrary to recent empirical research based on the same data, we find no evidence that common ownership raises airline prices. Read More.
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