TITLE:
Product Repositioning in the UK Newspaper Industry
AUTHORS:
Stefan Behringer
KEYWORDS:
Spatial Predation, Location Models, Product Repositioning, Predatory Pricing
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.5,
September
20,
2016
ABSTRACT: This paper investigates the alleged predatory
behaviour in the UK quality newspaper industry in the 1990s in terms of product
repositioning using a horizontal differentiation model and industry data. It
supports the call for an “effects
based” approach to competition law by showing that non-price conduct can be a critical
and less visible, complementary means to achieve a predatory goal than mere price cuts.