Self Preferencing and Price Squeeze

Martin Mandorff () and Sten Nyberg
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Martin Mandorff: Konkurrensverket (Swedish Competition Authority), Postal: Konkurrensverket, 103 85 STOCKHOLM, Sweden

No 2023:1, Konkurrensverket Working Paper Series in Law and Economics from Konkurrensverket (Swedish Competition Authority)

Abstract: We examine the incentives for a gatekeeper controlling a competitive bottle neck, whether it be a digital platform, supermarket shelf space, or a classical infrastructure such as a telecommunications network, to exploit or exclude competitors by means of self-preferencing. Our focus is on pricing conduct, so called price squeeze, but we also touch on non-price conduct. We characterize the welfare efects of restricting price squeeze through antitrust intervention or regulation. We also examine how such policies afect incentives to undertake cost reducing investments, both for the gatekeeper as well as for its competitors.

Keywords: Price squeeze; bundling; price discrimination; foreclosure; antitrust; pass through. (search for similar items in EconPapers)
JEL-codes: D42 D43 K21 L24 L41 L42 L44 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-12-01
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