ABSTRACT

This chapter includes the main changes incorporated into the Guidelines; it is important to note that the inclusion of timelines, likelihood and sufficiency of entry could be considered as the first inclusion of game theory to analyze competition. Even though game theory has been used since 80s to understand the behavior of firms in their markets, the Agencies of American competition did not pay attention to incorporate them in Guidelines. The sunk costs issue is deeply connected with investment in capacity and therefore with economies of scale. The Guidelines of 1992, maintained in 2006, established that the control of 35 per cent of the total product in industry is enough to be considered market power, and two years maintaining this control is considered stable market share. Industrial concentration is one way to exercise market power, which means industrial output control drive to control the market price. Advertising is considered as barrier to entry at the end of the twentieth century.