Economics of Abuse of Dominant Position

Abstract

The economics of competition law has been closely related to that of monopoly and the abuse of dominant position by firms. The paper aims to bring out the role of economics in the determination of abuse of dominant position by a firm in a free market with special emphasis on the factors that are used in defining dominance explained extensively with the use of several cases decided in Indian and in European courts. It also lays down the various exclusionary pricing strategies undertaken by firms in order to exploit potential competitors and customers with a detailed analysis of exclusionary conduct. The concept of collective dominance has also been briefly dealt with, in reference to approaches used in order to determine the effects of cartelization in the market.