Identify and briefly explain the anti-competitive possibilities inherent in Net marketplaces.

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The anti-competitive possibilities inherent in Net marketplaces include:

• The possibility that they may provide some firms with an ideal platform to collude on pricing, market sharing, and market access. For example, in a Net marketplace owned by large industry players, owner-members could collide with one another on the prices they are willing to pay for inputs.

• The sharing of information in order to reach market-sharing agreements in which they divide the market up into segments and agree to produce only enough for their allocated segment.

• The coordination of a reduction in purchases, forcing the suppliers to sell their inputs below market prices.

• The restriction of market access if large industry players exclude smaller rivals, thus forcing them to pay higher prices for their inputs.



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