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

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50501 - Law

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název statě ve sborníku

EU Antitrust: Hot Topics & Next Steps

ISBN

9788076300217

ISSN

—

e-ISSN

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Počet stran výsledku

14

Strana od-do

438-451

Název nakladatele

Charles University, Faculty of Law

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

1. 1. 2022

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

001233632900033