Unveiling Market Power: How Microeconomic Analysis Shapes Competition Policies
This article discusses how microeconomic analysis is used in competition policy to identify anticompetitive practices. Market power is a crucial concept in this analysis, with firms that can influence prices considered to have market power. The presence of market power does not automatically mean a violation of antitrust laws, but it is a key factor in determining potential anti-competitive behavior. Real markets often deviate from the ideal competitive model, with most companies having some degree of market power.