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Lear Competition Note- Price-cost test in predatory abuses: treatment of common cost and multiperiod

Price-cost tests play an essential role in the antitrust analysis of predatory abuses. Indeed, they are useful instruments to understand whether incumbents are sacrificing short terms profit to eventually foreclose rivals. Although intuitive, the implementation of the price-cost tests requires the definition of several factors and assumption. This LCN contributes with an overview on the price-cost tests methodology.

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Date: 17 September 2014
Tag(s): Abuse of Dominance