The object of this research produced by the UK Office of Fair Trading (OFT) from LEAR is to improve the understanding of the costs of inappropriate competition authority (non) intervention in cases relating to abuse of dominance. A key aim is a greater understanding of these ‘error costs’ by type of abuse, industry characteristics and form of competition. The research proposes a new taxonomy of potentially abusive conducts and discusses how to asses their welfare effects, so as to minimize the costs of the errors which could be committed by a competition authority.
Published by the OFT (September 2006)