SCP Paradigm Was Criticized

‭SCP paradigm was criticized‬ ‭According to the‬‭Chicago school‬‭, the relationship‬‭between structures and performances must be‬ ‭reversed: the performances of the E are at the origin of the structures. According to the‬ ‭hypothesis of “‬‭efficient structure‬‭»‬‭,‭t‬ he E increases‬‭their market shares‬‭because they are‬ ‭ roductive-H.‬‭Demsetz,‬‭“Two Systems of Belief about‬‭Monopoly,‬‭1974‬‭.‬ p ‭This type of analysis leads to the notion of contestable‬‭markets Baumol‬‭,‭C ‬ ontestable markets and‬ ‭the theory of industry‬ ‭structure‬‭,‭1 ‬ 982‬‭:behavior and performance independent‬‭of sector structures, they depend on‬ ‭potential external competition. SO‬‭number of E on a‬‭market does not matter‬‭,‬‭as long as free‬ ‭entry into the market is possible.‬‭Because the potential‬‭design eliminates the possibility of‬ ‭excess profit and ensures prices close to those designed.‬ ‭ )‬ a ‭Duel Harvard Chicago through the case of Microsoft vs. US Department of Justice,‬ ‭90s‬‭Microsoft was in a position to quasi-monopoly‬‭on operating systems‬‭. But claimed that she‬ ‭was unable‬‭to set a monopoly price‬‭For‬‭many reasons‬‭.‬ ‭-There‬‭competition from rival products‬‭,‬ ‭-The existence of potential‬‭entrants‬‭,‬ ‭-‬‭Its own installed base‬‭(its customers already have‬‭an operating system, nothing obliges them to‬ ‭buy the latest, more expensive version);‬ -‭ Of the‬‭pirate software‬‭.‬ ‭-Acknowledged having a monopoly‬‭position‬‭, but‬‭no monopoly‬‭power‬‭.‬ ‭-‬‭Sentenced to dismantling in 2000‬‭, Microsoft obtained‬‭dropping‬‭the charges in‬‭2001 subject to‬ ‭implementing‬‭11 clauses relating to the opening of‬‭its source codes‬‭.‬ ‭-Authors of the‬‭Chicago School‬‭(Demsetz, Stigler, Posner‬‭etc.) have challenged‬‭the‬ ‭misuse of the concentration variable‬‭, What Results‬‭from an effective offer and‬‭stay‬ ‭questionable.‬ ‭Example‬‭:‬‭dominant position of Microsoft Has‬‭been less‬‭scaled‬‭down by procedure‬ ‭opened‬‭by the European Commission and the American‬‭antitrust authorities.By‬ ‭Emergence‬‭of the Internet eco and Android.‬ ‭ )‬ b ‭Implementation of competition:‬ ‭-In recent years, we are more like Chicago in the US and Harvard in Europe (see CAE note on the‬ ‭policy of European design by Philippon + below).‬ ‭ istory :‬ H ‭US:‬ ‭1890‬‭: Sherman Act - First antitrust law: ex ante control‬‭of‬ ‭concentrations.‬‭1914‬‭: Clayton Act - ex post control‬‭- dissolution of‬ ‭trusts.‬ ‭1914‬‭: Creation of the‬‭Federal Trade Commission‬‭(ensures‬‭Clayton + Sherman, with exceptions‬ ‭such as Sport leagues).‬ ‭ rance‬‭:‬ F ‭1986‬‭: creation of‬‭Competition Council‬‭(ex post control).‬ ‭2008‬‭: Competition Council becomes‬‭Competition Authority‬‭(also‬‭takes control ex‬ ‭ante). In the US, we have the Federal Trade Commission, in Europe we have‬ ‭the‬‭DGC‬‭+national competition authorities.‬ ‭ rior control of concentration agreements (ex ante):‬ P ‭Maybe Accepted, or accepted under‬‭condition‬‭(asset‬‭sales), or‬‭denied‬‭(Alstom-Siemens)‬ ‭-In 2019, Mr. Vestager banned merger‬‭Alstom-Siemens‬‭(see‬‭European course). That would have‬ ‭represented a big increase in price. However, its mandate requires it to deal with the European‬ ‭ arket and not the global market (‬‭relevant market‬‭)‬‭so she was not in favor of it.‬ m ‭Should we create European giants? No on trains according to DGC. But yes in the banks pr +‬ ‭stability‬ ‭Repressive instruments (ex post)‬‭:‬ ‭Repression against abuse of dominant‬ ‭ osition‬ p ‭-‬‭Injunction‬‭:either to stop a practice or to do something.‬ ‭-‬‭Dismantling‬‭:ex = Standard Oil in 1914 broken up into‬‭34 companies.‬ -‭ Difficulty: the question is whether the elimination of competitors results from superiority in terms of‬ ‭costs and/ or quality (in which case it is unfair to dismantle), or from a deliberate strategy of an‬ ‭Without‬‭compensation for the consumer.‬