Aaron S. Edlin
Professor of Economics and Richard Jennings Professor of Law
University of California, Berkeley
http://works.bepress.com/aaron_edlin/
Economics 127: Antitrust Economics and Law
Professor Aaron Edlin
Spring 2023
Course Description: The Course will be focused on Supreme Court Antitrust Cases. We will
study both antitrust law and antitrust economics. Antitrust law governs the accumulation and
exercise of market power. It prohibits both monopolization and agreements in unreasonable
restraint of trade such as price fixing. It also prohibits anticompetitive mergers and a variety of
specific competition problems such as exclusive dealing or tying arrangements. Deciding what
qualifies as "monopolization," what qualifies as an "unreasonable restraint of trade," what
qualifies as "anticompetitive," and more generally how to interpret the prohibitions of antitrust
law invariably involves economic analysis. Such economic analysis commonly goes by the name
"antitrust economics". The course will not focus on current issues in antitrust law & policy.
Class: 2040 Valley Life Sciences: T, Th. 9:30-11AM Pacific Time (I start talking at 9:40AM-Berkeley Time for 9:30, but please come before.)
 First Class:
Tuesday, January 17, 2022
 Last Class:
Thursday, April 27, 2022
Exams:
Midterm:
Final:
Take-home exam. Assigned March 2. Due March 6.
Take-home exam. Assigned May 5. Due May 9.
Office Hours: We look forward to getting to know you.
1. GSI Office Hours found on GSI bcourses website for sections
2. Professor Edlin: Usually Fridays 2-3:15 PM, but sometimes other times as announced
Join Professor Edlin’s Office Hours on Zoom at https://berkeley.zoom.us/j/91944288320
(If the above link fails, please look at course homepage to see if there is a new link) to introduce
yourself, discuss antitrust, get career advice, or listen to other students' questions.
Contact Information: aaronsedlin@gmail.com. You are encouraged to write me to remind me
to post class notes if not posted by 5PM the day before class. I can't answer substantive
questions by email. Please come to office hours to ask me questions or ask GSIs. Most
administrative questions can be answered by your GSI.
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Graduate Student Instructors (GSI's): See Course Homepage on bcourses.
Course Prerequisites: Intermediate Microeconomics at the level of Economics 100A or 101A is
required. Economics 121 is recommended.
Required Textbook:
 Antitrust Analysis: Problems, Text, and Cases, 8th Edition, 2021, by Areeda, Kaplow,
Edlin, and Hemphill and ISBN 97815438043931 ("Areeda, Kaplow, Edlin, and Hemphill")
Important to buy case book because cases are edited (i.e., shortened) and we want to focus
on the portions included in the casebook. We will refer to page numbers in casebook
frequently. We also assign problems and analysis from casebook.
Course Website: Bcourses will be used to post and distribute problem sets, exams, and course
announcements. Go to https:\\bcourses.berkeley.edu, log in, and look for Econ 127.
Materials will be under the “Files” link on the left-hand side.
For help with bcourses website, write bcourseshelp@berkeley.edu or call 510-643-2571.
Enrollment Questions: Contact headgsi@econ.berkeley.edu
Problem Sets: Problem sets will be posted on bcourses. Problem sets will be handed in through
Gradescope or bcourses (the GSIs will decide what is easiest for them and will tell you). Please
write your GSI about where to turn in problem set if you can't figure it out. Problem sets will be
added to bcourses over the course of the semester. There will be 7-13 problem sets in total.
Problem sets will be graded based upon effort, thoroughness, and strength of argument.
Study Groups: Study groups encouraged for problem sets. I will randomly group students for
problem set study groups to facilitate this; you are encouraged but not required to work with
the study group to which you are assigned. But you must write your own problem set answers.
Study groups are NOT allowed for exams. You must sign a pledge on exams that you adhered to
the honor code and did all the work on your own on exams.
In class exercises
These are integral to learning.
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

Some in class assignments will be turned in for check/no check
grades during class.
If you miss in class assignments because you were sick and couldn't
come to class, opportunities will be given to make up the missed
assignment.
Class participation.
I will ask questions in class. All students should be prepared to answer questions at any
time. Therefore do the reading before class. Those on panels should be especially ready to
answer questions. Sometimes I will ask for volunteers. Other times I will call a student at
random. The purpose of this is engagement with the material. I want you each to be thinking
and to be potential and actual participants in class. I encourage you to ask me questions as well.
This will help to liven things up for all of us, and help us all learn antitrust law and antitrust
economics together.
Panels. Each student is assigned to a panel for a week in bcourses. Panelists should be
especially prepared during their week to be called on and answer questions. Preparedness and
performance on panels will be especially important for participation grades. Find your panel
under People in bcourses.
Students who are not on panels in bcourses (perhaps because they joined the class late) need
to alert their GSI and join a panel.
Oral Argument Exercise
Students will write Appellate Briefs of 5-10 double spaced pages and make oral arguments
of 5 minutes in assigned teams of two. This exercise will be due near the end of the semester.
Some will make them in class. Others will make them on Zoom and submit a recording of their
arguments. Further details will be given later in the semester.
Course Requirements/Grading:
In class assignments
Class participation and preparedness
Problem sets (check/no check)
Appellate Argument Exercise
Midterm (take home)
Final
Grading Weights
5%
10%
20%
20%
20%
25%
Grading Curve: Course grades will be curved as follows:
Approximate Percentage
A
20%
A25%
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B+
B
BC-F
26%
18%
7%
4%
Policies:
1. Do poorly on midterm? If you benefit, we will automatically drop your midterm grade
and put a 45% weight on your final. Our grading spreadsheet will automatically
maximize your grade by calculating your grade with and without your midterm and
awarding you the maximum grade possible.
2. Late midterm or final will be downgraded. No credit will be given once model answers
are distributed or other exams are graded.
3. Most questions asked by email will receive the answer "please come to office hours". I
want to meet you so, please come to my office hours with questions. Administrative
questions should be asked to your GSI in the first instance. Please email me, though, if I
need to post something on bcourses.
4. Problem Sets are due at Midnight Pacific Time on day specified. Sometimes the
problem set itself specifies a due date, but usually the due date will be announced
separately through bcourses, because the pacing of the course is not predetermined.
5. Late homework is marked down; it will receive ½ credit if it is turned in within 1 week of
its due date.
6. The lowest problem set grade is dropped.
7. Cheating: Cheating will generally result in failing the course and being reported for
university discipline. Every year we catch several cheaters.
8. Late enrollees. If you enroll late in the course, you will have 10 days from enrollment to
do past due problem sets for full credit. Please contact your GSI to discuss.
9. Regrades: Students can request a regrade on the midterm exam. Any regrade requests
should be submitted in writing by email to your GSI no later than 1 week after the exam
was returned. Regrade requests should argue both sides as follows. Explain what you
got wrong and how your answer could have been better. Also explain why you think
you deserve more points. We will regrade the whole exam not just the portions you are
concerned about. Your grade may go up or down as a result. If grades always went up,
everyone would be tempted to ask for a regrade and it would be unfair to students who
didn't ask. Unfortunately, because final grades must be handed in immediately after
grading there is no opportunity to regrade the final.
Honor Code: The student community at UC Berkeley has adopted the following Honor Code:
"As a member of the UC Berkeley community, I act with honesty, integrity, and respect for
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others." We expect you to adhere to this code. Those who don’t will have their grades
lowered appropriately, usually failing the course.
[REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK. SEE NEXT PAGE FOR READINGS AND
TOPICS LIST]
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ORDER OF TOPICS AND READING
SUBJECT TO CHANGE!!!!
We will not get to all the material in the syllabus. Thoroughness and understanding will be
privileged over coverage. A significant amount of material will likely be cut. We may also add
other material as the course progresses.
Readings are from Antitrust Analysis: Problems Text, and Cases, 8th ed. 2021, by Areeda,
Kaplow, Edlin, and Hemphill (the "casebook" ) unless otherwise noted.
For some students, the symbols "¶" and "§" are new. You should read "¶33" as "Paragraph
33". Read "§1" as "Section 1."
Materials other than those listed above will (Eventually) be found on the course website.
INTRODUCTORY MATERIAL
1) Introduction to Course, the Antitrust Statutes, Basic Economics and Potential Goals of
Antitrust (AT), (Slide Decks 1 and 2)
Read ch. 1, pp. 3-24 of Areeda, Kaplow, Edlin, and Hemphill (the casebook). (Note:
hereafter, Areeda, Kaplow, Edlin, and Hemphill is presumed and not specified);
Antitrust Primer (on bcourses); Statutes in Appendix of casebook. (Sherman Act § 1 and
§2; Clayton Act §3, §7; FTC Act §5), p. 14-23 of Tim Wu, "The Curse of Bigness"
(readings on bcourses). Also available on JSTOR through UCB at
https://www.jstor.org/stable/j.ctv1fx4h9c.3?seq=1#metadata_info_tab_contents
AGREEMENTS IN RESTRAINT OF TRADE
2) Horizontal Agreements and the Development of the Per Se Rule and the Rule of Reason
(Slide Deck 3)
pp. 87-99; Focus especially on Addyston Pipe (1899)( 94-96); Joint Traffic (1898) (96-97);
¶205(b); and Trans-Missouri ruinous competition passage on bcourses.
Standard Oil (1911) (97-98), ¶132, ¶205(c); Chicago Board (1918) ( 99-102), ¶206(b).
3) The Per Se Rule for Horizontal Price-Fixing (Slide Deck 4)
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Trenton Potteries (1927) (103-104), ¶207; and Socony (1940)(107-140), ¶209, ¶210,
¶211, ¶212.
4) Vertical Agreements for Restricted Distribution (Slide Deck TBD)
 The Per Se Era. ¶¶400-402; Dr. Miles (1911)(538-540); ¶404; Albrecht (1968)(¶405)
Arnold, Schwinn (1967)(¶406); ¶¶407-411;

The Rule of Reason Revolution. Khan (1997)(554-559), ¶415, Leegin (2007)(Majority
Sections I-III(560-567); Section I of Dissent), ¶416.
5) What Horizontal Cooperation is Allowable? When do defendants escape per se
condemnation? (Slide Deck TBD)

What Cooperation is Allowed: Traditional Per Se Categories with a Twist (Slide Deck
TBD)
¶¶213-214; Topco (1972)(pp.117-119), ¶215(e)(f); BMI (1979)(pp.121-130),
¶217(a)(c);

Quick Look Rule of Reason (Slide Deck TBD)
Engineers (1978)(138-143), ¶¶220(a)(d)(e); Indiana Federation of Dentists (1986)
(272-277), ¶272. California Dental Assoc. (1999)(154-161). ¶222.

NCAA v. Alston (2021) Website.
6) Group Boycotts of Competitors or Customers/Distributors (Slide Deck TBD)
¶261; FOGA (1941)(253-256) ¶264(a)(b)(c); AP (1945)(261-265), ¶268(a), ¶269(a); Klor's
(1959)(258-259), ¶265, Molinas ¶266(b); ¶267
7) On the existence of Agreements: Inferring agreement from circumstantial evidence (Slide
Deck TBD).

Oligopoly Theory: ¶¶231-236. Interstate Circuit (1939)(181-185), Theatre Enterprises
(1954)(185-187),

American Tobacco (187-188), ¶¶238-239; Matsushita (1986)(¶240a), Twombly (¶240c),
Text Messaging (please read the case in the casebook, not the later summary-judgmentstage case, which we won’t discuss).
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8) Pharmaceutical Patents and Pay for Delay Cases (Slide Deck TBD)
FTC v. Actavis (342-350). ¶299. Aaron Edlin, Scott Hemphill, Herbert
Hovenkamp, and Carl Shapiro "Activating Actavis," Antitrust, pp. 16-23 (2013)
(See bcourses readings).
MONOPOLIZATION
Element #2: Bad Acts (Slide Deck TBD)
9) The Distinction Between Monopoly and Monopolization. ¶300, Sherman Act Section 2,
¶¶301-304; Alcoa (1945)(358-364), ¶¶305-306; ¶307 (American Tobacco, 1946)
10) Leverage and the Single Monopoly Profit Theory.¶313; Griffith (1948) (373-374); ¶314
11) Refining the Notion of Exclusionary Behavior. United Shoe (1954) (375-382), ¶315 (U.S. v.
Grinnell Corp.), ¶3210, ¶321, Microsoft (2001)(388-405). ¶322-324.
12) Predatory Pricing: Barry Wright (1983)(435-441), ¶¶336-337; AMR(456-461); "Amazon's
Antitrust Paradox" Lina Khan, Yale Law Journal (2017); Stopping Above Cost Predatory
Pricing, Aaron Edlin Yale Law Journal (2002) (see readings on bcourses)
13) Vertical Integration and Dealing with Competitors: ¶325 Aspen (1985)(412-419), ¶¶328329; Trinko (2004)(423-430); ¶331-332.
Element #1: Monopoly Power (Slide Deck TBD)
14) Reasonable Interchangeability and the Hypothetical Monopoly Test. ¶¶344-352¶¶347-356;
¶¶353-354 (Not Alcoa), ¶354; Cellophane (1956)(558-564), ¶358(f),¶359,360. ¶361-362
Microsoft (2001)(567-573) ¶364. ¶366 (Market definition for two-sided platforms, including
Amex), ¶367.
HORIZONTAL MERGERS (IF Time Allows--Likely we will skip)
15) Background and older cases: ¶¶502, ¶506; Philadelphia Bank (1963)(774-779); ¶516.
General Dynamics (1974)(783-788) ¶¶517.
16) Modern Merger Cases
Skim the 2010 Horizontal Merger Guidelines ¶519, Horizontal Merger
Guidelines, ¶520. (845-862).
Staples (1997)(803-821); ¶¶522,524,¶530. H&R Block (2011)
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OTHER TOPICS IF Time Allows
17) Tying, Bundled and Loyalty Discounts
 Readings TBD
18) Complaints against Google, Apple, or Facebook.
 Readings TBD.
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