Rebates: Harmful or Beneficial – But Always Alluring

Competition authorities suspect that certain rebates may lead to monopolization. Economic models show that rebates do not necessarily have negative effects on competition. They may even increase welfare. In the Lab consumers reacted to rebates they were offered in a different way than the economic models would expect them to. How can competition law account for these findings? Researchers at the Max Planck Institute for Research on Collective Goods seek after an adequate solution.