The Areeda–Turner Test for Exclusionary Pricing: A Critical Journal

Herbert Hovenkamp ()

Review of Industrial Organization, 2015, vol. 46, issue 3, 209-228

Abstract: Few scholarly articles have had the impact enjoyed by Areeda and Turner’s (Harv Law Rev 88(4):697–699, 1975 ) article on predatory pricing, which is elaborated in the Antitrust Law (Areeda and Hovenkamp in Antitrust law. Aspen Publishers, New York, 2015 ) treatise. Proof of predatory pricing under the Areeda–Turner Test requires two things: a market structure plausibly indicating the possibility of “recoupment,” and prices below a relevant measure of cost, which was presumptively average variable cost (AVC). That so many courts embraced the Areeda–Turner Test might seem surprising, given that contemporary assessments from economists were quite negative: They faulted the AVC test itself, the test’s inadequate consideration of fixed costs, and the exclusive focus on short-run (nonsustainable) strategies. Copyright Springer Science+Business Media New York 2015

Keywords: Antitrust; Monopolization; Predatory pricing; Pricing strategies (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11151-015-9456-1 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:46:y:2015:i:3:p:209-228

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2

DOI: 10.1007/s11151-015-9456-1

Access Statistics for this article

Review of Industrial Organization is currently edited by L.J. White

More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().