Key Terms
DEFINITION
The practice of offering identical or similar goods to different buyers at different prices when the costs of producing
Intent to monopolize requires ALL THREE
1. Predatory or anticompetitive conduct 2.
Evidence of intent
Purchasing smaller competitors to increase market share; engaging in predatory pricing.
Three elements of predatory pricing
1. The alleged predator is selling products below cost.
Court analysis of a potential merger examines
1. The relevant market (product/service + geographic area) 2.
FREE ENTERPRISE
A private, consensual system of production and distribution, usually for profit, in a competitive environment, relativel
MONOPOLY
Control or advantage by one supplier or producer over the commercial market within a given region.
MONOPOLY POWER
The power to fix prices unilaterally or exclude competition.
SUBSTITUTABILITY / FUNCTIONAL INTERCHANGEABILITY
Whether goods or services are interchangeable in consumers' minds; used to define the product market.
RESTRAINT ON TRADE
An agreement between two or more businesses intended to eliminate competition, create a monopoly, artificially raise pri
UNREASONABLE RESTRAINT ON TRADE
A restraint that produces a significant anticompetitive effect; violates antitrust laws.
CONCERTED ACTION
Action planned, arranged, and agreed upon by parties acting together.
PRICE FIXING
Artificially setting or maintaining prices contrary to free market forces.
PREDATORY PRICING
Selling below cost to eliminate competition, then raising prices to recover losses.
TYING ARRANGEMENT
Requiring a buyer to purchase a second product in order to purchase the first.