Document Type
Article
Publication Date
2006
Abstract
The central thesis of this article is that the use of the profit-sacrifice test as the sole liability standard for exclusionary conduct, or as a required prong of a multi-pronged liability standard is fundamentally flawed. The profit-sacrifice test may be useful, for example, as one type of evidence of anticompetitive purpose. In unilateral refusal to deal cases, it can be useful in determining the non-exclusionary benchmark. However, the test is not generally a reliable indicator of the impact of allegedly exclusionary conduct on consumer welfare - the primary focus of the antitrust laws. The profit-sacrifice test also is prone to several significant pitfalls and often would be complex and subjective to implement in practice. As a result, relying on the profit-sacrifice test as the legal standard would lead to significant legal errors.
Publication Citation
73 Antitrust L.J. 311-374 (2006)
Scholarly Commons Citation
Salop, Steven C., "Exclusionary Conduct, Effect on Consumers, and the Flawed Profit-Sacrifice Standard" (2006). Georgetown Law Faculty Publications and Other Works. 212.
https://scholarship.law.georgetown.edu/facpub/212
Comments
This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.