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Cartel and abuse of dominant position

November 2013

Sciences Po

Emmanuel Frot and Nathalie Daley teach a course on industrial organization to students of the Master in Finance and Strategy at SciencesPo.

The objective of the course is to provide a working knowledge of the analytical tools of industrial organization useful to understand the strategic decisions firms make. Its purpose is different from a more traditional industrial organization course as it does not make use of mathematical modelling but rather seeks to show student how economic concepts apply to real-world market situations. Although clearly applied, the course does not eschew theoretical concepts and also provides students with a basic but solid introduction to microeconomic theory.

This lecture deals with collusion and abuse of dominant position. It presents empirical facts on cartels, the factors facilitating cartel stability and the main tools used by competition authorities to fight cartels. It also discusses the criteria used to assess dominance and the equally efficient competitor test used to evaluate the effects of the practices.

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