directive on private enforcement Quantification of damage & passing on

Transcrição

1 directive on private enforcement uantification of damage & passing on 3rd Portuguese and Spanish Conference on Competition Law Auditório Vieira de Almeida Lisboa, 28 e 29 de Novembro de 2013 A aculdade de conomia e Gestão e a Católica Porto Business School são membros da MD. A MD é uma rede líder de Business Schools no mundo comprometida com a partilha de conhecimento e a colaboração entre escolas e promovendo o intercâmbio de professores e de estudantes.

2 Disclaimer: The opinions expressed in this presentation represent the own views of the author and not those of Universidade Católica Portuguesa or Caixa Geral de Depósitos.

3 The set up production, firms, value chain and essential facilities Infrastructure Value Chain irm A1 Production irm B1 Production irm C1 Independent ssential acility irm A3 Retail irm B3 Retail irm C3 Independent 3

4 Strategic behaviour industrial organisation and foreclosure Infrastructure Value Chain irm A1 Production irm A3 Retail irm B1 Production ssential acility irm B3 Retail irm C1 Independent irm C3 Independent 4

5 Market equilibrium at the consumer end exclusionary prices: access costs to the essential facility P1 P

6 Market equilibrium at the consumer end two reasons for welfare loss: price and quantity pass on to consumers at producers expense P1 P0 P2 1 0 under production 6

7 Market equilibrium at the consumer end passing on extra costs: price elasticity of demand pass on to consumers Some consumers are rationed out by price, and overall they buy less than it is socially desirable. P1 P0 But, how are consumers represented? 1 0 under production 7

8 Market equilibrium at the consumer end burden on the firm: the costs of production at producers expense costs of production are increased, reducing with profit expropriation. Competition in the market is crucial to determine the extent of pass on. elasticity of demand is key P0 P2 1 0 under production 8

9 But-for Prices How to build a comparator? 9

10 some specific issues (1) the power of perfect and imperfect substitutes at the firm and industry levels Market (share) P0 P2 of the firm 1 0 under production 10

11 some specific issues (2) market dynamics: expansion, entry and exit P0 P2 of the firm 1 0 under production 11

12 some specific issues (3) production dynamics: innovation and cost decrease P0 P2 of the firm 1 0 under production 12

13 some specific issues (4) non-price discrimination: difficult access P0 P2 of the firm 1 0 under production 13

14 some specific issues (5) vertical integration: are we really talking about essential facilities? P0 P2 of the firm 1 0 under production 14

15 complexity when everything is playing together regression analysis, simple comparison, complementary goods, substitute goods, technological innovation, cross-country comparisons, cost based methods, cost-of-capital, structural separation, firewalls, 15

16 One of the oldest puzzles of politics is who is to regulate the regulators. But an equally baffling problem, which has never received the attention it deserves, is who is to make wise those who are required to have wisdom. J. Galbraith 16

17 Mais que isto É Jesus Cristo, ue não sabia nada de finanças Nem consta que tivesse biblioteca... ernando Pessoa 17

18 Disclaimer stes slides foram preparados para a 3.a Conferência Luso spanhola em Direito da Concorrência. As posições e opiniões aqui expressas são da exclusiva responsabilidade do seu autor, bem como eventuais erros e omissões, não vinculando a Universidade Católica Portuguesa, ou quaisquer outras instituições em que se encontra afiliado. O uso fora deste contexto ou para outras finalidades carece de autorização expressa. Na preparação desta apresentação foram respeitados critérios académicos e científicos de rigôr, independência e liberdade com que todos os docentes da Universidade estão comprometidos. Comentários e críticas podem ser dirigidos ao seu autor e à direção da aculdade de conomia e Gestão. Porto Novembro de 2012 School of conomics and Management Universidade Católica Portuguesa in Porto, Portugal Visit us at: Álvaro Nascimento Professor de inanças T M anascimento@porto.ucp.pt 18