In antitrust theory and practice, it is widely accepted that high degree of market concentration would curb competition within a market. Thus, the market concentration ratio is an important index to be looked at when ruling on antitrust cases. However, competition is never static; instead, it is characterized by dynamic collision and confrontations between or among competitive brands. Focus only on market concentration ratios without taking into account the dynamic nature of competition among brands could misjudge antitrust cases. This article takes vertical restraints and horizontal mergers as examples to illustrate the concept of Competitive Equilibrium Point that is a useful approach to assess competition. The motorcycle market of Taiwan is included as a case analysis to support the argument.
Relation:
International Journal of Management 22(1) : 101-111
