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How the Chicago School Overshot the MarkThe Effect of Conservative Economic Analysis on U.S. Antitrust$
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Robert Pitofsky

Print publication date: 2008

Print ISBN-13: 9780195372823

Published to Oxford Scholarship Online: January 2009

DOI: 10.1093/acprof:oso/9780195372823.001.0001

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Economic Analysis of Exclusionary Vertical Conduct: Where Chicago Has Overshot the Mark

Economic Analysis of Exclusionary Vertical Conduct: Where Chicago Has Overshot the Mark

Economic Analysis of Exclusionary Vertical Conduct: Where Chicago Has Overshot the Mark

Chapter:
(p.141) Economic Analysis of Exclusionary Vertical Conduct: Where Chicago Has Overshot the Mark
Source:
How the Chicago School Overshot the Mark
Author(s):

Steven C. Salop

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195372823.003.0011

This chapter presents two papers that take issue with Chicago School thinking at the most basic levels, rejecting the ideas that vertical arrangements rarely if ever can harm consumers, exclusionary vertical conduct is either benign or procompetitive, and that predatory pricing (pricing below some appropriate level of cost) “is rarely attempted and even more rarely succeeds.” The first paper also rejects the idea that vertical arrangements can almost never hurt consumers or competition. The second paper focuses on case law concerning vertical arrangements and exclusive dealing law.

Keywords:   antitrust, Chicago School, exclusionary conduct, predatory pricing, anticompetitive, efficient conduct

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