Journal Article

MARKET DEFINITION AND UNILATERAL COMPETITIVE EFFECTS IN ONLINE RETAIL MARKETS

Michael R. Baye

in Journal of Competition Law & Economics

Volume 4, issue 3, pages 639-653
Published in print September 2008 | ISSN: 1744-6414
Published online May 2008 | e-ISSN: 1744-6422 | DOI: https://dx.doi.org/10.1093/joclec/nhn015
MARKET DEFINITION AND UNILATERAL COMPETITIVE EFFECTS IN ONLINE RETAIL MARKETS

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Although the basic principles used to define a relevant market or to analyze unilateral competitive effects in traditional retail settings also apply in online retail markets, several features of the online environment add complexities to the analysis. This paper examines some of the results in the economics and marketing literatures that can influence market definition and competitive effects analysis in online retail settings. I argue that a failure to account properly for certain aspects of online markets can lead to erroneous definitions of the relevant market and, more importantly, erroneous conclusions regarding the unilateral competitive effects of horizontal mergers.

Keywords: K21; L81

Journal Article.  5886 words.  Illustrated.

Subjects: Antitrust Issues and Policies ; Services

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