LAW 642 Lecture Notes - Lecture 26: Weyerhaeuser, Monopsony, Forego
30 May 2020
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Weyerhaeuser (2007): predatory buying subject to brook group standard. Predatory buying theory: large buyer bid up price of key input to their industry allegedly in order to starve competitor and run them out of business. Court ruled you had to apply brook group standard in buying context as well. However, if you intend you recoup on the selling side then it may be a different story depending on the nature of the market: price squeezes: Monopolist wholesaler charges supracompetitive prices for inputs to all competing retailers, exempting itself, pushing up the downstream prices for all competitor-retailers. If there"s an exploitative wholesale price and only the monopolist can forego the wholesale price, to use the fact that the retail price is not. Dsl transfer at the same rate as it charged its competitors) on the grounds that upstream monopolists with no duty to deal are perfectly welcome to charge monopoly prices at the wholesale level.
