BLAW 430 Lecture Notes - Lecture 7: Price Discrimination, Market Power
Document Summary
Possession of monopoly power in the relevant market. Unfair attainment of market power: perhaps, buying out your competitors is bad. Defendant has engaged in anti competitive conduct, There is a dangerous possibility that the defendant will succeed. Prohibits dscrimination in the prices chaarged to competing purchasers where the discrimination harms competition unless there is a legitimate business justification. Ex: one of the largest rubber distributors. Must discriminate in price between different purchasers. Of commodities of like grade and quality, and. The effect may be to lessen competition or create a monopoly. Could be competition affecting the seller or the sellers purchasers. Cost justification (for ex: economies of scale in producing large quantities) Response to market conditions (seasonal items, perishable goods)
