With incisive and thought-provoking contributions from both leading academics and practitioners, this book addresses in detail the major areas in relation to the Commission Guidance Paper on Applying Article 82 of the EC Treaty (now Article 102). The paper has been at the centre of much of the recent debate on antitrust policy in Europe and has generated significant controversy and intense debate. The authors contend that the guidance from the Commission is on the one hand entirely justifiable in its focus on consumer harm in identifying what constitutes an abuse, but that on the other is not consistent enough in its message, nor indeed does it offer enough structural guidance on the practical application of the approach. The book addresses all of these concerns, considers the reform of article 102, and identifies the challenges inherent in its enforcement, looking for instance at enforcement in certain sectors, such as the high tech sector. The book considers recent seminal antitrust cases such as the Microsoft case to illuminate and better understand abuse of dominance. It brings a line of clarity to often contradictory messages and in so doing provides invaluable practical guidance to enforcers and practitioners alike.The editors combine the insight of a leading international economist and an experienced antitrust scholar, and the contributions are linked by a common emphasis on a strong economic approach to antitrust enforcement.

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.

This is a key year for the evolution of international markets. The global economy is experiencing the most severe downturn since the thirties, it is temporarily leaving a path of sustained growth that characterized the last decades, and is facing an impressive decline of trade between countries. Banks are going bankrupt, the stock market has crashed, rms are going out of bu- ness or drastically reducing their production and exports, workers are being red and investment in new business creation or innovation is shrinking. Meanwhile, consumers con dence has dropped at its minimum, aggregate demand has been declining for months and expansionary policies and int- national coordination have failed to counteract the crisis until now. It is quite likely that all this will change sooner or later, but at the end of this crisis our understanding of the macroeconomy may change as well. In front of these crucial events, this book is not an attempt at proposing a radically new way of interpreting macroeconomic phenomena, and, as a m- ter of fact, it is not even a book on macroeconomic theory. My more modest goal is to collect a number of insights derived from recent research on the role of competition and innovation in the analysis of three topics: business cycles, trade and growth through innovations.

This is a key year for the evolution of international markets. The global economy is experiencing the most severe downturn since the thirties, it is temporarily leaving a path of sustained growth that characterized the last decades, and is facing an impressive decline of trade between countries. Banks are going bankrupt, the stock market has crashed, rms are going out of bu- ness or drastically reducing their production and exports, workers are being red and investment in new business creation or innovation is shrinking. Meanwhile, consumers con dence has dropped at its minimum, aggregate demand has been declining for months and expansionary policies and int- national coordination have failed to counteract the crisis until now. It is quite likely that all this will change sooner or later, but at the end of this crisis our understanding of the macroeconomy may change as well. In front of these crucial events, this book is not an attempt at proposing a radically new way of interpreting macroeconomic phenomena, and, as a m- ter of fact, it is not even a book on macroeconomic theory. My more modest goal is to collect a number of insights derived from recent research on the role of competition and innovation in the analysis of three topics: business cycles, trade and growth through innovations.

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.

With incisive and thought-provoking contributions from both leading academics and practitioners, this book addresses in detail the major areas in relation to the Commission Guidance Paper on Applying Article 82 of the EC Treaty (now Article 102). The paper has been at the centre of much of the recent debate on antitrust policy in Europe and has generated significant controversy and intense debate. The authors contend that the guidance from the Commission is on the one hand entirely justifiable in its focus on consumer harm in identifying what constitutes an abuse, but that on the other is not consistent enough in its message, nor indeed does it offer enough structural guidance on the practical application of the approach. The book addresses all of these concerns, considers the reform of article 102, and identifies the challenges inherent in its enforcement, looking for instance at enforcement in certain sectors, such as the high tech sector. The book considers recent seminal antitrust cases such as the Microsoft case to illuminate and better understand abuse of dominance. It brings a line of clarity to often contradictory messages and in so doing provides invaluable practical guidance to enforcers and practitioners alike.The editors combine the insight of a leading international economist and an experienced antitrust scholar, and the contributions are linked by a common emphasis on a strong economic approach to antitrust enforcement.

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.

This is a key year for the evolution of international markets. The global economy is experiencing the most severe downturn since the thirties, it is temporarily leaving a path of sustained growth that characterized the last decades, and is facing an impressive decline of trade between countries. Banks are going bankrupt, the stock market has crashed, rms are going out of bu- ness or drastically reducing their production and exports, workers are being red and investment in new business creation or innovation is shrinking. Meanwhile, consumers con dence has dropped at its minimum, aggregate demand has been declining for months and expansionary policies and int- national coordination have failed to counteract the crisis until now. It is quite likely that all this will change sooner or later, but at the end of this crisis our understanding of the macroeconomy may change as well. In front of these crucial events, this book is not an attempt at proposing a radically new way of interpreting macroeconomic phenomena, and, as a m- ter of fact, it is not even a book on macroeconomic theory. My more modest goal is to collect a number of insights derived from recent research on the role of competition and innovation in the analysis of three topics: business cycles, trade and growth through innovations.

This is a key year for the evolution of international markets. The global economy is experiencing the most severe downturn since the thirties, it is temporarily leaving a path of sustained growth that characterized the last decades, and is facing an impressive decline of trade between countries. Banks are going bankrupt, the stock market has crashed, rms are going out of bu- ness or drastically reducing their production and exports, workers are being red and investment in new business creation or innovation is shrinking. Meanwhile, consumers con dence has dropped at its minimum, aggregate demand has been declining for months and expansionary policies and int- national coordination have failed to counteract the crisis until now. It is quite likely that all this will change sooner or later, but at the end of this crisis our understanding of the macroeconomy may change as well. In front of these crucial events, this book is not an attempt at proposing a radically new way of interpreting macroeconomic phenomena, and, as a m- ter of fact, it is not even a book on macroeconomic theory. My more modest goal is to collect a number of insights derived from recent research on the role of competition and innovation in the analysis of three topics: business cycles, trade and growth through innovations.

In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.