Mental Accounting and Market Definition in Antitrust: How Behavioral Biases Reshape Competitive Boundaries

In the intricate world of antitrust law, the definition of a relevant market stands as a cornerstone of competition analysis, yet its foundational assumptions are increasingly being questioned. This process, which identifies the boundaries of competition between firms, has traditionally relied on the model of a rational consumer. However, the growing body of knowledge in behavioral economics challenges this paradigm, a shift now formally acknowledged by regulators.

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