What is a relevant market in antitrust?

What is a relevant market in antitrust?

Since 1980, the DOJ and the FTC have used these guidelines to convince courts to adopt a more explicitly economic approach to antitrust policy. A relevant market comprises a product or group of products and the geographic area in which these products are produced and/or traded.

What are antitrust laws economics?

Antitrust laws also referred to as competition laws, are statutes developed by the U.S. government to protect consumers from predatory business practices. They ensure that fair competition exists in an open-market economy.

How do antitrust laws affect the economy?

Antitrust laws protect competition. Free and open competition benefits consumers by ensuring lower prices and new and better products. In a freely competitive market, each competing business generally will try to attract consumers by cutting its prices and increasing the quality of its products or services.

How do you identify a relevant market in competition law?

Relevant market is defined by consumer or purchaser preferences and actions. For instance, if purchasers consider two goods to be close substitutes or readily interchangeable, those two goods are considered to be in the same relevant market.

What factors determine the relevant market?

What Factors Determine the Relevant Market for a Survey?

  • Classification. One of the most important initial factors in determining the market for a survey is the classification of your market.
  • Age.
  • Gender.
  • Income.
  • Geography.

What are some examples of antitrust laws?

Some of these antitrust laws include:

  • Sherman Antitrust Act. The Sherman Antitrust Act is the oldest legislation to curtail the powers of monopolies and cartels.
  • Clayton Antitrust Act. The Clayton Antitrust Act was enacted as an improvement of the Sherman Act of 1890.
  • Hart-Scott-Rodino Act.
  • Celler-Kefauver Act.
  • Williams Act.

Why do economists support antitrust laws?

Most antitrust officials—and the economists who advise them—believe that the antitrust laws have two main purposes: to ensure that markets operate efficiently and that consumers are not harmed by a firm’s actions toward them or the firm’s competitors.

What are antitrust laws economics quizlet?

Antitrust Law. series of law intended to promote abundant, fair competition in the marketplace. -illegal monopolies, pricing schemes, product distribution networks, mergers. -details anticompetitive behaviors that are illegal.

What is an example of relevant market?

How do you determine relevant market?

The relevant market combines the product market and the geographic market, defined as follows. A relevant product market comprises all those products and/or services which are regarded as interchangeable or substitutable by the consumer by reason of the products’ characteristics, their prices and their intended use.