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ECON306: Industrial Organization

Unit 7: Antitrust Markets  

In this section, we will study the boundaries of a market that is essential to antitrust enforcement.  The different definitions of boundaries have different implications for market power, market share, and firm conduct.  In order to ensure that the firms do not infringe upon each other's rights or have unfair practices, a market needs to be clearly defined.  Antitrust laws and competition policies define conduct that create, enhance, or preserve market power.

            After studying the distinction between economic markets and antitrust markets, we will analyze the the kind of markets that require antitrust enforcement and then move on to the role of elasticity of demand  in the two markets. Unit 7 Time Advisory
Time Advisory: This unit will take you 11 hours to complete.
·        Subunit 7.1: 3 hours
·        Subunit 7.2: 4 hours
·        Subunit 7.3: 4 hours            

Unit7 Learning Outcomes
Upon successful completion of this unit, students will be able to:
·       Explain what is meant by economic markets with emphasis on the product dimension.
·       Explain the concept of an antitrust market.
·       Identify the factors that determine market power.
·       Describe the relationship between market power and market shares.
·       Explain how cross price elasticities are used to define relevant markets.
·       Derive the extent of price increases by comparing the prevailing elasticity of demand to the critical elasticity of demand.
·       Define break-even critical sales loss and the break-even critical demand
elasticity.
·        Assess the structural approach to market definition.
 

7.1 Economic Markets and Antitrust Markets   - Reading: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware's Industrial Organization: A Strategic Approach:"Chapter 19, Section 19.1: The Concept of a Market" Link: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware's Industrial Organization: A Strategic Approach :"Chapter 19,Section 19.1:  The Concept of a Market" (PDF)
 
Instructions: If you have not saved this PDF file, you will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please read the introduction before reading sections marked. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.

7.2 The Search for Market Power   - Reading: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware's Industrial Organization: A Strategic Approach:"Chapter 19, Section 19.2: Antitrust Markets: The Search for Market Power" Link: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware's Industrial Organization: A Strategic Approach: "Chapter 19,Section 19.2:  Antitrust Markets: The Search for Market Power" (PDF)
 
Instructions: If you have not saved this PDF file, you will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please read the introduction before reading sections marked. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.

7.3 Case Study   - Reading: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware's Industrial Organization: A Strategic Approach:"Chapter 19, Sections 19.3-19.4: Antitrust Markets in Monopolization Cases" Link: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware's Industrial Organization: A Strategic Approach: "Chapter 19,Section 19.3-19.4:  Antitrust Markets in Monopolization Cases " (PDF)
 
Instructions: If you have not saved this PDF file, you will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please read the introduction before reading sections marked. 
 
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.