TY  - JOUR
AU  - Carlton,Dennis W.
AU  - Greenlee,Patrick
AU  - Waldman,Michael
TI  - Assessing the Anticompetitive Effects of Multiproduct Pricing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14199
PY  - 2008
Y2  - July 2008
UR  - http://www.nber.org/papers/w14199
L1  - http://www.nber.org/papers/w14199.pdf
N1  - Author contact info:
Dennis W. Carlton
Booth School of Business
University of Chicago
5807 S. Woodlawn Ave.
Chicago, IL 60637
Tel: 847/217-6000
Fax: 312/322-0262
E-Mail: dennis.carlton@chicagobooth.edu

Patrick Greenlee
U.S. Department of Justice
600 E Street NW Suite 10000
Washington, DC 20530
E-Mail: patrick.greenlee@usdoj.gov

Michael Waldman
Johnson Graduate School of Management
323 Sage Hall
Cornell University
Ithaca, NY  14853-6201
Tel: (607) 255-8631
Fax: (607) 254-4590
E-Mail: mw46@cornell.edu
AB  - In response to the "standardless" approach used in LePage's v. 3M, the Antitrust Modernization Commission (AMC) and others advocate using a discount allocation approach to assess whether bundled loyalty discounts violate Section 2 of the Sherman Act. This approach treats loyalty discounts like predatory pricing. The analogy to predatory pricing is flawed. We propose an alternative approach that focuses on the presence of significant scale economies. We use our approach to analyze LePage's, as well as the recent PeaceHealth decision.
ER  -