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The role of networks in antitrust investigations

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  • Matthew Elliott
  • Andrea Galeotti

Abstract

Antitrust investigations typically focus on the competitive pressures coming from within the defined markets of interest. However, competitive pressures can also come from other markets. Even when individually these markets place only weak constraints on one another, collectively they may matter. A networks approach to modelling competition permits a systemic view of competition that can sometimes paint a more accurate picture. We demonstrate this through some simple examples, and show more generally how tools from the networks literature can be applied to capture competition across a system of interrelated markets. As a leading example, we consider antitrust investigations into supermarkets where local geographic markets have been used as the basis of investigation.

Suggested Citation

  • Matthew Elliott & Andrea Galeotti, 2019. "The role of networks in antitrust investigations," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(4), pages 614-637.
    • Handle: RePEc:oup:oxford:v:35:y:2019:i:4:p:614-637.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grz022
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Charlson, G., 2021. "Rating the Competition: Seller Ratings and Intra-Platform Competition," Cambridge Working Papers in Economics 2106, Faculty of Economics, University of Cambridge.
    2. Elliott, M. & Galeotti., A. & Koh., A. & Li, W., 2021. "Market Segmentation Through Information," Cambridge Working Papers in Economics 2105, Faculty of Economics, University of Cambridge.
    3. Genakos, C. & Grey, F. & Ritz, R., 2020. "Generalized linear competition: From pass-through to policy," Cambridge Working Papers in Economics 2078, Faculty of Economics, University of Cambridge.
    4. Alberto Bracci & Jorn Boehnke & Abeer ElBahrawy & Nicola Perra & Alexander Teytelboym & Andrea Baronchelli, 2021. "Macroscopic properties of buyer-seller networks in online marketplaces," Papers 2112.09065, arXiv.org, revised Apr 2022.
    5. Darpoe, Erik & Dominguez, Alvaro & Martin-Rodriguez, Maria, "undated". "Bargaining Dynamics and Varied Linking Costs in Stable Networks," AGI Working Paper Series 2024-04, Asian Growth Research Institute.
    6. Andrea Galeotti & Benjamin Golub & Sanjeev Goyal & Eduard Talam`as & Omer Tamuz, 2021. "Taxes and Market Power: A Principal Components Approach," Papers 2112.08153, arXiv.org, revised Jun 2022.
    7. Charlson, G., 2020. "Searching for Results: Optimal Platform Design in a Network Setting," Cambridge Working Papers in Economics 20118, Faculty of Economics, University of Cambridge.

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