Publications

	Table of Contents
p. 18 of 62 BACK | NEXT Purpose and Structure of the Toolkit Overview of Practices Controlled by Competition Law Countries with Competition Law Systems Benefits of Competition Policy Practices Controlled by Competition Law Key Concepts and Tools Market Power Market Definition EC Notice on Market Definition SSNIP Test Problem of the Cellophane Fallacy Evidence Used for Defining Relevant Product and Geographical Markets Key Indicators of Market Power Competition, Privatization, and Regulation Emerging Economies Enforcement Mechanisms ADB Resources and Projects Other Resources Glossary and List of Abbreviations

Competition Law Toolkit : Key Concepts and Tools

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B. Market Definition

Pure monopoly is rare, but a firm, or a group of firms acting collectively, may have sufficient power over the market to enjoy some of the benefits available to the true monopolist. If the notion of "power over the market" is key to analyzing competition issues, it becomes immediately obvious that it is necessary to understand what is meant by "the market" or the "relevant market" for this purpose. The concept is an economic one [ PDF ], and in complex cases, it may be necessary for lawyers to engage the services of economists and other specialists to assist in the proper delineation of the market, as highly sophisticated economic, econometric and statistical analysis is sometimes called for. In most competition law cases, progress cannot be made without some feel for the appropriate market definition, and all "practitioners"—here used in a broad sense to include both advisers and competition policy officials and judges—must be familiar with the relevant principles [ PDF ].

1. The European Commission's Notice on Market Definition
2. The Small but Significant Non-transitory Increase in Price (SSNIP) Test
3. The Problem of the Cellophane Fallacy
4. Evidence Used for Defining Relevant Product and Geographical Markets

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