Industrial Organization

Prof. José Nicanor Gonzales Quijano

Sessions 3 & 4
Lima, 31 March – 1 April 2022
Understanding the interactions of internal and external
transactions and their costs in an institutional context
Collaborative Economy Platform
The current concern of the anticompetitive effects on
the digitally intensive Collaborative Economy
Economic structuralism, market structure and
anticompetitive behavior
The Chicago School on the interplay of market forces
The Amazon Case
The Amazon Group
US Subsidiaries………………
………….and the world as a battleground
Biden´s Executive Order (EO) of 9 July 2021
The aim of the EO
Structural concerns and the competitive process in the
context of online platforms: the case of Amazon
Investigation of anticompetitive conduct in the online industry
Big Tech under Antitrust Scrutiny
Investigation of Competition in Digital Markets
Market capitalization growth during current CEO tenure
Política Industrial Verde
CIS compared to other corporate organizational frameworks
Intellectual monopoly and knowledge predation
Innovation as organized by Intellectual Monopolies
Innovations as outcomes of learning processes
Are network effects and digital platforms benefitial
or harmful to competition?
The digital economy interphase with the traditional economy
From the Digital Economy to the
Digitalized Algorithm Economy
The broader scope of the Digitalized Economy
E-Business and E-Commerce in the Digitalized Economy are
based on Blockchain Cryptoeconomics
What is Cryptoeconomics?
A transformational revolution
As of July 2021
Digital platform examples
Relevance of digital platforms
What is the impact on SMEs?
Competition in the digital economy has evolved incorporating
innovations in the use of algorithms, IT, AI, ML and BD
Competition and consumer protection policies are
complementary to trade and industrial policies
playing an important role in achieving the SDO
The dynamic view in the context of the digital economy
considers both internal and external competition
Rethinking traditional competition policy
in the context of the digital economy
Digital marketplaces have become a big opportunity for SMEs
Collusion in the digital economy
Competition policy must be integrated with industrial policy
Main issues
The case of the credit card market
The credit card market in the U.S.
The case against American Express
Market Power (MP) and Antitrust Enforcement
Definition of Market Power (MP)
MD/MS paradigm
MD: A most difficult problem
MP and anticompetitive effects
Amex´s restraints across the network services market
What is the relevant market?
Relevance of Amex´s rewards programs
MP and product quality
Are traditional tools for evaluating market power enough?
Are NDPs justified?
Is a restraint justified?
Are rewards programs justified?
U.S. Attorney General on online platforms (WSJ, 27 Enero 2020)
The vote in the Supreme Court (5 to 4)
Rule of reason satisfied?
Minority position (Justice Breyer et al)
Diverging opinions persist to date
Carlton´s opinion
Carlton´s vMFN
Kaplow (HLR, 2010)
Divergent opinions
MP as measured by the Lerner Index
Mergers in differentiated products markets
The Hypothetical Monopolist Test (HMT)
Horizontal Merger Guidelines (HMG)
HMG
Separating active and passive competitive forces
The role of industrial organization in competition policy
MP from MS in non-homogeneus goods markets
MP and Lerner Index
The case for a non-homogeneous goods market
HMT and SSNIP
HHI and MP
Legislation in the EU and the USA
Measuring MP
Liability Threshold
MP>MP* and A>A*
MP and profit differences
The role of industrial organization
MP and A
MP>MP* and A>A*
Two-sided platforms (Rochet & Tirole)
“The fact that consumers
can change search
engines quickly and at
zero cost restricts the
ability and incentive for
Google to act
anticompetitively” (Robert
Bork, 2012)
La importancia de definir el mercado para inferir poder de mercado
La racionalidad de delinear el mercado relevante
Definir un mercado relevante es imposible sin haber evaluado antes si hay poder de mercado
(Kaplow, 2010)
Poder de mercado medido por el índice Lerner (precio-costo marginal)
Delineación de mercado en casos de fusiones (The Court,1960s)
El caso de fusiones en mercados de productos diferenciados
El alcance óptimo hacia la colusión y el impacto de las condiciones estructurales
Mercados relevantes en la narrativa antimonopolio
La prueba del monopolista hipotético (HMT)
Definir mercados ayuda a examinar y evaluar cómo podría afectarse
la competencia, identificando de forma expeditiva aquellas fusiones
no dañinas y sentando las bases para anticipar impactos competitivos
Preguntas clave para definir un mercado relevante
Marco Analítico para Definición de Mercados
(HMT)
Mercado de Producto y Mercado Geográfico
en la Definición de un Mercado Relevante
La Guía de Fusiones Horizontales (HMG)
La Guía de Fusiones Horizontales (HMG)
¿Qué sucede en un mercado de dos lados
como el de tarjetas de pago?
Delineación de mercados en casos de litigio
No siendo suficiente que una alta participación de mercado determine
poder monopólico, el uso de la HMT asegura su significancia
Fuerzas competitivas pasivas (v.g. la elasticidad de la demanda) importan
pero son secundarias a las activas en el mercado relevante
Delinear mercados sirve propósitos analíticos y narrativos no
atendidos por otras herramientas
El rol de la organización industrial en la política de competencia
Infiriendo MP de MS en mercados de bienes no homogéneos
Poder de mercado (MP) y el índice Lerner para el caso de una firma dominante
con una franja competitiva
The case for a non-homogeneous goods market
La HMT y el SSNIP
El umbral del HHI y el MP
La legislación en la UE y los EEUU
Midiendo el grado de MP
El umbral de la responsabilidad (y penalidad)
MP>MP* y A>A*
Poder de mercado y diferencias entre utilidades
El rol y la contribución de la economía de la organización industrial
Tiene el Perú una visión de largo plazo?
El PNCP
Política Industrial Verde
Industry 4.0

https://www.youtube.com/watch?v=ktcRXyE8SaY

https://www.youtube.com/watch?v=ccB6e18VwsQ

https://www.youtube.com/watch?v=CVK2QcX1KsM