Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

No 09-2002: Meaningful and Measurable Market Domination

Lisbeth F. la Cour and H. Peter Møllgaard
Additional contact information
Lisbeth F. la Cour: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
H. Peter Møllgaard: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

Abstract: The European Court of Justice’s definition of when a firm has a dominant position has recently come under attack as being meaningless and impossible to measure. We argue that both attacks are wrong, suggest an economic interpretation of domination and propose how it may be measured using modern time series econometrics. We illustrate the approach empirically.

Keywords: Market domination; monopoly; competition policy; competition law

JEL-codes: D41; D42; K00; L12; L40

7 pages, May 1, 2002

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