ABSTRACT

The traditional economic analysis of monopoly has a structural and static focus. It examines the welfare implications of a firm being a monopolist. Although most laws relating to monopolization or abuse of dominant position deal with conduct entailed in attempting to acquire, defend or enlarge a monopoly position, the static analysis provides the foundation for legal concerns that have a more dynamic or conduct-oriented focus. Thus, we begin with this conventional static analysis, which is shown in Figure 17.1.