SHOULD “PRICE SQUEEZE” BE A RECOGNIZED FORM OF ANTICOMPETITIVE CONDUCT?

Dennis Carlton

Journal of Competition Law and Economics, 2008, vol. 4, issue 2, 271-278

Abstract: Should a “price squeeze” constitute anticompetitive conduct requiring investigation under the antitrust laws? A price squeeze occurs when a vertically integrated firm supplies an input to its downstream competitors at a price that generates a profit margin so low that the competitors exit the downstream market. I ask whether it is sensible to try to use antitrust laws to prevent such conduct or whether such an attempt would create more harm than benefit. The current case, linkLine Communications, Inc. v. SBC California, Inc., raises this exact question.

JEL-codes: K21 L4 L42 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:oup:jcomle:v:4:y:2008:i:2:p:271-278.

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Journal of Competition Law and Economics is currently edited by Nicholas Economides, Amelia Fletcher, Michal Gal, Damien Geradin, Ioannis Lianos and Tommaso Valletti

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