Journal Article

PRICE SQUEEZE: LESSONS FROM THE <i>TELECOM ITALIA</i> CASE

Michele Polo

in Journal of Competition Law & Economics

Volume 3, issue 3, pages 453-470
Published in print September 2007 | ISSN: 1744-6414
Published online July 2007 | e-ISSN: 1744-6422 | DOI: http://dx.doi.org/10.1093/joclec/nhm012
PRICE SQUEEZE: LESSONS FROM THE TELECOM ITALIA CASE

Show Summary Details

Preview

ABSTRACT

This paper analyzes a price squeeze case in the provision of telecommunication services to the Italian Public Administration, in which Telecom Italia, the incumbent company, was condemned for bidding below costs. We develop the analysis of the case highlighting the possible anticompetitive story and the alternative competitive explanation. We then construct a quantitative imputation test to verify the alleged anticompetitive behavior. The methodological issues and the assumptions needed to implement the test are discussed in detail, showing their link to a precise test of the anticompetitive story. We discuss the reasons why the Antitrust Authority and our views diverge over the evaluation of Telecom Italia bidding. The role of judicial review in cases with complex economic arguments is discussed.

Journal Article.  7368 words.  Illustrated.

Subjects: Competition Law ; Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.