Research report 2004 - Max Planck Institute for Intellectual Property, Competition and Tax Law
Network effects, dynamic efficiency and antitrust law
Authors
Mackenrodt, Mark-Oliver
Departments
Geistiges Eigentum und Wettbewerbsrecht (Prof. Dr. Dres. h.c. Joseph Straus)
MPI für Geistiges Eigentum, Wettbewerbs- und Steuerrecht, München
Summary
From the point of view of antitrust law the legal assessment of a competitive strategy hinges on the strategy’s effect on competition. This effect, in turn, is determined by market mechanisms. The notion of network effects refers to a microeconomic concept of industrial economics that explains the specific market mechanisms in network markets. A research project at the Max Planck Institute for Intellectual Property, Competition and Tax Law analyzes the influence of network effects on market mechanisms and competitive strategies and assesses how effectively the instruments of antitrust law scrutinize the activities in network markets.