Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Raising Rivals’ Costs

  • Naoufel MzoughiEmail author
  • Gilles Grolleau
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_403


We describe the different possibilities that a protagonist has to start a process to raise rival’s costs (RRC). We present the general RRC mechanism and necessary conditions to make it successful. We also expose the strengths and weaknesses of RRC theory.

This is a preview of subscription content, log in to check access.


  1. Barjolle D, Jeanneaux P (2012) Raising rivals’ costs strategy and localised agro-food systems in Europe. Int J Food Sys Dyn 3(1):11–21Google Scholar
  2. Boudreaux D (1990) Turning back the antitrust clock: nonprice predation in theory and practice. Regulation 45–52Google Scholar
  3. Brennan T (1986) Understanding raising rivals’ costs. Antitrust Bull 33:95–113Google Scholar
  4. Carlton D, Perloff J (1998) Modern industrial organization. Addison Wesley Longman, New YorkGoogle Scholar
  5. Church J, Ware R (2000) Industrial organization: a strategic approach. McGraw-Hill, BostonGoogle Scholar
  6. Coate M, Kleit A (1994) Exclusion, collusion, or confusion? The underpinnings of raising rivals’ costs. Res Law Econ 16:73–93Google Scholar
  7. Depken G, Ford J (1999) NAFTA as a means of raising rivals’ costs. Rev Ind Organ 15(2):103–113CrossRefGoogle Scholar
  8. Director A, Levi E (1956) Law and the future: trade regulation. Northwest Univ Law Rev 51:281–296Google Scholar
  9. Granitz E, Klein B (1996) Monopolization by “raising rivals’ costs”: the standard oil case. J Law Econ 39:1–47CrossRefGoogle Scholar
  10. Grolleau G, Ibanez L, Mzoughi N (2007) Industrialists hand in hand with environmentalists: how eco-labeling schemes can help firms to raise rivals’ costs. Eur J Law Econ 24(3):215–236CrossRefGoogle Scholar
  11. Harris F, Hyde A, Wood R (2014) The Persistence of dominant-firm market share: raising rivals’ cost on the New York Stock Exchange. South Econ J 81(1):91–112CrossRefGoogle Scholar
  12. Hilke J, Nelson P (1984) Noisy advertising and the predation rule in antitrust analysis. Am Econ Rev 74(2):367–371Google Scholar
  13. Lopatka J, Godek P (1992) Another look at ALCOA: raising rivals’ costs does not improve the view. J Law Eco 35:311–329CrossRefGoogle Scholar
  14. Lyon T (2003) “Green” firms bearing gifts. Regulation 4:36–40Google Scholar
  15. Nelson R (1957) Increased rents from increased costs: a paradox of value theory. J Polit Econ 65:287–294Google Scholar
  16. Normann H (2011) Vertical mergers, foreclosure and raising rivals’ costs – Experimental evidence. J Ind Econ 59(3):506–527CrossRefGoogle Scholar
  17. Salop S, Scheffman D (1983) Raising rivals’ costs. Am Econ Rev 73:267–271Google Scholar
  18. Salop S, Scheffman D (1987) Cost-raising strategies. J Ind Econ 1:19–34CrossRefGoogle Scholar
  19. Sartzetakis E (1997) Raising rivals’ costs strategies via emission permits markets. Res Law Econ 12:751–765Google Scholar
  20. Scheffman D (1992) The application of raising rivals’ costs theory to antitrust. Antitrust Bull 37:187–206CrossRefGoogle Scholar
  21. Scheffman D, Higgins R (2003) 20 years of raising rivals’ costs: history, assessment, and future. George Mason Law Rev 12(2):371–387Google Scholar
  22. Williamson O (1968) Wage rates as a barrier to entry: the Pennington case. Q J Econ 82:85–117CrossRefGoogle Scholar
  23. Yandle B (1983) Bootleggers and Baptists: the education of a regulatory economist. Regulation 7(3):12–16Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.INRA, UR 767 EcodéveloppementAvignonFrance
  2. 2.Supagro, UMR 1135 LAMETAMontpellierFrance
  3. 3.Burgundy School of Business – LESSACDijonFrance