ABSTRACT
Group boycotts are collaborative arrangements in which firms set out between them the competitive limits necessary to obtain the efficiency flowing from the arrangement, and rules for third parties seeking to obtain those benefits. Such arrangements can therefore be motivated by procompetitive factors ranging from industry demand to technological improvements. The arrangements, like those examined in Chapter 4 on permissible restraints, can provide economies of both scale and scope, reduce costs of duplication and distribution, and attract investment incentives. Put simply, these arrangements indicate that cooperative use of facilities to generate and share efficiency is sometimes feasible. Conversely, depending on the structure of the market, the market power of the collaborative group and rules governing interactions between members and other participants over access, this type of collaboration can exclude or significantly reduce the competitive ability of rivals and/or foster collusion.
