THE RELEVANT TEMPORAL MARKET DEFINITION IN ANTITRUST ANALYSIS
Journal Title: Baltic Journal of Economic Studies - Year 2018, Vol 4, Issue 1
Abstract
The purpose of the paper is to compare various theoretical approaches to the relevant temporal market definition, collecting the arguments for their implementation under the different kinds of antitrust cases. It is vital for the markets with peak demand (transport, electricity, markets of intergenerational products) or discreet supply (agriculture). Methodology. The survey is based on the theoretical and graphical modelling of product space perception by consumers. It investigates changes of the latter under different marketing strategies of a seller. Statistical methods are used to analyse trends of demand and prices for iPhones’ changes, as well as dynamics of electricity consumption. Results. The paper reveals two facing approaches to the definition of relevant temporal market: 1) the discrete one that provides a short-run analysis of products’ substitutability and combines only those time periods that are characterized by a stable balance of demand and supply, as well as stable market equilibrium; 2) the coherent one that provides a long-run analysis of cyclical variation of the market. This cycling is based on the awareness of consumers and producers of intertemporal substitutability of products. The authors use the model of intertemporal competition to explain principles of these approaches and apply it to the iPhone market analysis. They conclude that the coherent approach must be applied to the temporal market definition for the products with elastic demand. Inelastic demand brings the necessity to apply the discrete approach to the temporal market definition. These conclusions cannot be applied to regulated markets. The system of government regulation is the main determinant of the temporal boundaries of such markets. Practical implications. The results of this research can be used by competition agencies in antitrust cases to define the relevant temporal market, where the violations of antitrust legislation can occur. The correct definition of the market is the first step of structural analysis under antitrust cases that determinates the correctness of its next steps and finally – accurate labelling of an antitrust violation. Value/originality. The paper grounds capability of both (discrete and coherent) approaches to the relevant temporal market definition, determines the factors that define what the approach must be chosen, as well as the exceptions from the rule.
Authors and Affiliations
Anzhelika GERASYMENKO, Svitlana Afendikova
Keywords
Related Articles
- EP ID EP477554
- DOI 10.30525/2256-0742/2018-4-1-68-76
- Views 100
- Downloads 0
BUSINESS PROCESSES OPTIMIZATION WITHIN UKRAINIAN AUTOMOBILE ENTERPRISES IN TERMS OF EU ENTERING PERIOD
The purpose of the paper is to summarize and present the most common principles and management methods to seek the most efficient and profitable exit way for automobile enterprises during the period of economic recovery...
FEATURES OF FOREIGN INVESTORS’ PROTECTION IN ADMINISTRATIVE LEGAL PROCEEDINGS OF UKRAINE
In a difficult economic situation in Ukraine, the attracting of foreign investment is the priority direction of economic development. In practice, there are often cases of violation of the foreign investors’ rights by of...
ECONOMIC DEVELOPMENT OF EASTERN EUROPEAN COUNTRIES (ОN THE EXAMPLE OF UKRAINE): REGIONAL ASPECT
Research background. Modern trends in world politics and international relations dictate new schemes for establishing links between regions and encourage states to constantly improve them. One such form is economic coope...
BUDGETARY SAFETY PASSPORT AS A TOOL FOR IMPROVING AN ANALYTICAL COMPONENT OF ENSURING COUNTRY’S BUDGETARY SAFETY
The purpose of the paper is to explore the feasibility of using the budgetary safety passport as a tool for improving the analytical component of ensuring country’s budgetary safety and fiscal planning. Methodology. In t...
FINANCIAL MECHANISM OF THE SOCIO-ORIENTED ECONOMIC DEVELOPMENT OF THE BLACK SEA REGION
The aim of the article is to study the current state of financial provision of the social sphere of the Black Sea region and to develop practical recommendations for its optimization in conditions of decentralization pro...