Digitalisation and firm's own price elasticity of demand in dominant position analysis

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14220%2F22%3A00140122" target="_blank" >RIV/00216224:14220/22:00140122 - isvavai.cz</a>

Result on the web

<a href="https://www.prf.cuni.cz/sites/default/files/soubory/2022-06/EU_ANTITRUST_ebook_2022.pdf" target="_blank" >https://www.prf.cuni.cz/sites/default/files/soubory/2022-06/EU_ANTITRUST_ebook_2022.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Digitalisation and firm's own price elasticity of demand in dominant position analysis

Original language description

The finding of a dominant position in the EU is still predominantly based on market shares and, consequently, on relevant market definition. It is argued that despite differing views of the legal concept, a dominant position is a function of market power in a regular economic sense. Therefore, economic theory provides more direct tools for its assessment, namely quantification of price elasticity of demand after the product in question (firm's own or product specific price elasticity of demand). The idea is not new, but it has been rejected in the European framework mainly due to its link with an attack against the concept of market definition. It is argued that most of the arguments against it are avoided if it Is accepted that elasticity would be only used for the assessment of market power, not excluding market definition in other steps of an analysis. Impacts of digitalisation may address other arguments against a product specific price elasticity of demand. Namely, it increases the possibility of necessary data for calculations (prices and quantities) being collected and archived. Second, it diminishes the legal certainty and self-assessment functions of the approach assessing dominant position by market definition and market shares. Pre-research confirms that full research would be worth trying. Product specific price elasticity of demand could serve as a valuable tool for a dominant position analysis in certain cases, including cases in digital markets.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50501 - Law

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

EU Antitrust: Hot Topics & Next Steps

ISBN

9788076300217

ISSN

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e-ISSN

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Number of pages

14

Pages from-to

438-451

Publisher name

Charles University, Faculty of Law

Place of publication

Praha

Event location

Praha

Event date

Jan 1, 2022

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

001233632900033