Flashcards
L3 - Antitrust law
Cards in this deck (15)
- 1What are the basic features of legal rule?Clear & precise
Proportionate
Easy to administrate - 2What does rule of law entail?Enforcement
Due process
Transparency
Predictability
Stability - 3What are the caveats of legal rule?Do too much
Do too little
Incompetence (wrong questions)
Correct reasoning, wrong solution - 4What antitrust laws exist in the US?Sherman act
Clayton antitrust act
Anti price discrimination act
Anti-merger act
Antitrust improvement act - 5What is illegal under the Sherman act?Attempting to monopolise
- 6What is illegal under the Clayton antitrust act?Price discrimination
M&A that weaken competition - 7When is price discrimination allowed?If it reflects different costs
- 8Why is the anti-merger act needed in addition to the Clayton antitrust act?It prevents vertical mergers
- 9Why was the Antitrust improvements act needed?Mergers are not allowed until permission is given
- 10What are two theories on market operation?SCP paradigm
New industrial economics - 11What is the SCD paradigm?Structure (no. sellers, entry barriers)
Conduct (pricing, R&D)
Performance (price level, volume, efficiency) - 12What is the critique of SCP?Old theories with no causal link between entry barriers and profits
There are other theories for strategic conduct
Analysis should focus on companies' unique resources - 13What is new industrial economics?Builds on game theory (focus on market, partial equilibrium, not robust to small changes in underlying assumptions)
Market structure endogenous to conduct and result - 14What laws exist in the EU?Article 101 (anticompetitive agreements)
Article 102 (abuse of dominance)
Article 106 (national monopolies)
Article 107 (State aid)
EU merger regulation (impeded effective competition) - 15What are consequences of collision in the EU?Fines max 10% of turnover
Cease orders
Structural remedies
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- MSc Industrial Organisation Flashcards on L3 - Antitrust law, created by Linnéa Ekberg on 29/05/2021.
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- Linnéa Ekberg
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