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Conditional Pricing Practices and the Two Anticompetitive exclusion Paradigms Steven C. Salop Professor of Economics and Law, Georgetown University Law Center Senior Consultant, Charles River Associates DOJ/FTC Workshop on Conditional Pricing Practices June 23, 2014 1 Disclaimers My opinions are my own and are not necessarily shared by my colleagues at Georgetown or CRA, or by any clients with whom I have provided economic consulting. This short deck and the associated brief presentation are designed to stimulate discussion and so cannot reflect my full analysis of these issues 2 Issues to Discuss 2 exclusionary conduct paradigms Predatory Pricing Raising rivals costs Application to Conditional Pricing Practices (CPPs)s How can any discount harm consumers Limits of entrants counterstrategies as self-protection Flaws in price/ cost standards for RRC/CPP allegations 3 The Issue: Should the Same Legal Standard Apply to All of this Conduct?
Conditional Pricing Practices and the Two Anticompetitive Exclusion Paradigms Steven C. Salop Professor of Economics and Law, Georgetown University ... Raise competitors’ costs, which leads them permits firm to raise or maintain its price ... Discounts more costly to monopolist than to the entrant
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