Economists INK: Fall 2018
This issue discusses the European Commission’s (“EC”) recent ruling against Google, the Supreme Court’s American Express (“Amex”) decision, and the two-stage model of competition in hospital merger analysis. Dr. Mirrow discusses some key findings in the EC’s decision and points of contention between Google and the EC. Dr. Stoner discusses the Supreme Court’s recent ruling that Amex did not violate the antitrust laws. Dr. Stoner discusses the role of anti-steering provisions in Amex’s business model and how different business models compete in a two-sided platform setting. Dr. Fowdur discusses the “two-stage model of competition” and its recent use by the FTC and courts as a framework for evaluating competitive effects in hospital mergers. Dr. Fowdur discusses recent analyses that suggest the two-stage model may need to be extended to better predict price effects resulting from horizontal mergers between healthcare providers.