Product Strategy and Antitrust: A Consumer Choice Perspective

Ross D. Petty

Journal of Consumer Affairs, 2018, vol. 52, issue 2, 252-285

Abstract: Traditionally antitrust law is strongly tied to price theory economics so that prices, costs, profits, and profit sacrifice are typically examined in antitrust cases. This paper proposes broadening traditional antitrust analysis to also explicitly examine the likely effect of allegedly anticompetitive conduct on product options and consumer choice. In order to accomplish this task, this paper proposes that various aspects of marketing strategy should be considered when examining product strategies that are accused of being anticompetitive. This paper further suggests that the current list of inconsistently and poorly defined product strategies used by the courts be augmented by three more straight forward but overlapping categories based on impact on consumer choice: Lock‐Outs, Lock‐Ins, and Hold‐Ups.

Date: 2018
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https://doi.org/10.1111/joca.12148

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Persistent link: https://EconPapers.repec.org/RePEc:bla:jconsa:v:52:y:2018:i:2:p:252-285

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