| Are Judges Smarter than Economists? Sunk Costs, The Threat of Entry and the Competitive Process Contributor(s): Penny Hill Press, Inc (Editor), Federal Trade Commission (Author) |
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ISBN: 151979021X ISBN-13: 9781519790217 Publisher: Createspace Independent Publishing Platform OUR PRICE: $12.30 Product Type: Paperback - Other Formats Published: December 2015 |
| Additional Information |
| BISAC Categories: - Business & Economics |
| Physical Information: 0.05" H x 8.5" W x 11.02" (0.19 lbs) 26 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: Several recent antitrust cases indicate that courts believe the threat of entry can serve as an effective deterrent to an anticompetitive price increase. Yet there does not exist in the economic literature a general model that explains how entry can be such a threat, given the presence of small but positive sunk costs. This book presents such a model, using concepts of buyer strategies and uncertainty. The applicability of such a model is then discussed using recent court decisions. |