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date: 20 February 2020

Abstract and Keywords

This chapter addresses issues in antitrust economics that are related to the exercise of market power by a monopoly or by a dominant firm. It starts by presenting the standard textbook treatments of monopoly and the dominant firm and then discusses the nontrivial issues of what constitutes a real-world monopoly (or dominant firm) and how to identify it. With that as a basis, it discusses five categories of antitrust actions that can be used to limit the exercise of market power by a monopoly or dominant firm.

Keywords: monopoly, dominant firm, market power, antitrust, Lerner Index, predation, exclusion

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