Discussion Papers
Title: Tomorrow's Antitrust Rulings on Conditional Pricing: How the Latest Economic Research May Show the Way
Author(s): Asker, John ; Akkus-Clemens, Selvin
Academic Year: 2014-2015
Abstract
It is important to distinguish our focus from contracts that explicitly condition on the price of rivals. A good example of this is the most-favored-customer (MFC) agreement. With an
MFC agreement, a seller guarantees to match the lowest price a buyer can get from any of the seller’s rivals. By contrast, our focus is on contracts that provide a buyer with price discounts conditional on the level of that buyer’s own purchases.
Fields: market design