Price squeezes in electric power: The new Battle of Concord
- George Washington Univ., Washington, DC (United States)
The US Court of Appeals opinion in Town of Concord v. Boston Edison offers a vigorous statement of the position that in a regulated market, what may appear to be a price squeeze almost certainly cannot harm the competitive process and therefore should not be held to violate the antitrust laws. While not disputing the possibility of self-serving claims of price squeezes, this article shows that truly anticompetitive price squeezes may indeed occur in the electric power industry and cannot be so readily dismissed. This analysis begins with a brief factual and economic background on price squeezes, then addresses arguments made in Concord and elsewhere seeking to disprove their possibility, and demonstrate that sound economics and good policy require a more balanced approach.
- OSTI ID:
- 7246322
- Journal Information:
- Electricity Journal; (United States), Vol. 5:5; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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