The Law and Economics of Price Discrimination in Modern Economies: Time for Reconciliation?

TABLE OF CONTENTS INTRODUCTION: LAWS TARGETING PRICE DISCRIMINATION .............. 1237 I. ECONOMIC CONCEPTIONS OF PRICE DISCRIMINATION: A BRIEF REVIEW ..................................................................... 1239 A. Price Discrimination, Defined .......................................... 1239 B. Arbitrage, Market Power, and Price Discrimination ........ 1243 C. Price Discrimination Involving the Rates of Public Utilities and Carriers ....................................................... 1247 D. Price Discrimination by Multiple Firms ........................... 1250 II. IDENTIFYING CONCERNS OVER PRICE DISCRIMINATION .......... 1255 A. Revenue Generation, Welfare, and Competition ............... 1255 B. Fairness ........................................................................... 1255 C. Efficiency and “Consumer” Welfare ................................. 1259 III. LEGAL TREATMENT OF PRICE DISCRIMINATION IN THE UNITED STATES ...................................................................... 1260 A. The Original Clayton Act ................................................ 1262 B. The Robinson-Patman Act: Secondary-Line Effects .......... 1263 C. Primary-Line Effects ........................................................ 1265 D. Robinson-Patman Retrenchment ...................................... 1269 IV. PRICE DISCRIMINATION AND THE LAW IN THE EUROPEAN UNION .................................................................................... 1272 A. Price Discrimination and Article 82(c) of the EC Treaty ............................................................................. 1272 B. Comparing Article 82(c) with the Robinson Patman Act .. 1276