Introduction to the Economics of Competition Policy
Dimensions of competition—price, quality, innovation; types of competition - static vs. dynamic; economic objectives of competition law; demand and supply; the role of economics in competition policy; the use of the error-cost framework to derive competition uses.
Firms and Profit Maximisation
Demand, costs, profit maximisation; monopoly and the measurement of market power; the Lerner (price-cost margin) index and its application to the analysis of market power; static versus dynamic analysis and implications for identifying anticompetitive practices.
Demand, Supply and Welfare
Supply, demand and the notion of equilibrium; the use of the demand and supply framework to predict changes in prices and output (comparative statics); consumer surplus and social welfare.
Oligopoly and Game Theory
Role of oligopolies in economy; introduction to game theory; static games: Cournot and Bertrand models of oligopoly; dynamic games; applications of game theory in competition policy.
Cartels and Other Coordinated Practices
The economic theory of collusion; tacit collusion and information exchanges; facilitating factors for cartels; detecting and discouraging cartels; estimation of damages and assessment of fines for cartels.
Background on case law and economics; demand and supply substitution; hypothetical monopolist test; critical loss analysis; factors that enhance or reduce market power; dominant firm with competitive fringe model.
Legal and economic framework; unilateral effects: diversion ratios, pricing pressure indices and merger simulation; coordinated effects; analysis of efficiencies and remedies.
Pricing Strategies and the Competitive Process
Competition, innovation and welfare; excessive pricing, price discrimination; limit pricing; predatory pricing.
Exclusive Dealing and Loyalty Rebates
Exclusive dealing and loyalty rebates as part of the competitive process; anticompetitive exclusive dealing; efficiency justifications.
Tying and refusal to supply
Procompetitive tying, bundling and bundled discounts; anticompetitive tying, bundling and bundled discounts; refusal to supply and intellectual property.
Foreclosure incentives and single-monopoly profit theorem; ability to foreclose; vertical integration, complementary products and mergers.
Economic evidence and adjudication
expert evidence (including expert evidence techniques, e.g. hot tubing), case management procedures, internal organization of competition authorities, best practices for the submission and assessment of economic evidence