April 17, 2014
News from Global Authorities 
Today's top headlines from around the world. 
Company fails to have states' lawsuits tossed.
Antitrust Buzz 
This article develops an economic framework for applying the unfair pricing provisions of China's Anti-Monopoly Law. Authors David S. Evans, Vanessa Yanhua Zhang and Xinzhu Zhang show that virtually all jurisdictions around the world with such provisions have decided to consider unfair pricing claims only in exceptional circumstances, and rarely, if ever, in innovation-intensive industries. The approach followed on unfair pricing by jurisdictions around the world is consistent with modern Chinese economic policy.
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Economic Insights
This paper shows loyalty discounts create an externality among buyers because each buyer who signs a loyalty discount contract softens competition and raises prices for all buyers; in discussing its findings, the paper proves that certain propositions regarding loyalty discounts hold without assuming economies of scale, downstream competition, buyer switching costs, financial constraints, limits on rival expandability, or any intra-product bundle of contestable and incontestable demand.
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GeyerGorey hire joins former DOJ colleagues in D.C.

Economic Insights

The Relevent Market: Possible and Productive

From The Archives
In the latter half of the 20th century, the auto industry truly lost its way. It squandered its competitive advantage, allowed itself to become vulnerable to forces beyond its control, lost its markets one by one to foreign rivals, and stared into the abyss of its complete demise. Only government intervention on a previously unimaginable scale prevented that outcome. This paper casts light on issues raised by that government involvement.
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