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Behavioral Economics and Abuse of Dominance. Nicolas Petit (ULg) Vienna Competition Conference 2010 – Industry v. Competition? 9 June 2010, Vienna. Do we need a shrink?. Purpose of the presentation.
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Behavioral Economics and Abuse of Dominance Nicolas Petit (ULg) Vienna Competition Conference 2010 – Industry v. Competition? 9 June 2010, Vienna
Purpose of the presentation • Show that a significant body of behavioral economics has already penetrated European Union (“EU”) competition law, in particular in the area of abuse of dominance; • The buzz around behavioral economics is greatly exaggerated. This may have more to do with US antitrust law
Dominance • Market definition • Rational vs irrational substitution patterns • The SSNIP test • The EU empirical approach (market testing, etc.) • Dominance • Dominance analysis • Insights of behavioral economics on barriers to entry • Empirical approach of EU law to barriers to entry
Abuse • Predatory pricing • Bundling/Tying • Establishing an abuse • The traditional theory of harm • Psychological coercion • Correcting the Abuse – Remedies and the « nudging » of consumers • Microsoft I and II • Refusal to deal • Unfair trading conditions (shrouding)