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Terms and Abbreviations

ACCC - Australian Competition and Consumer Commission

Glossary imageACT - Australian Competition Tribunal

ASIC - Australian Securities and Investment Commission

AER - Australian Energy Regulator

Authorisation - process of authorising conduct otherwise prohibited as anti-competitive

Birdsville Amendment - reference to s 46(1AA) as inserted by the Trade Practices Legislation Amendment Act 2007

Cartel - agreements between competitors

CCA - Competition and Consumer Act 2010

CDPP - Commonwealth Director of Public Prosecution

Competition- process of rivalry

Dawson Report - Reference to Dawson Review 2003

DLC - Dual Listed Company (see s 49)

DOJ - Department of Justice (US)

ED - Exclusive Dealing

Federal Court - of Australia; has exclusive jurisdiction over Part IV claims

FTC - Federal Trade Commission (US)

Government - Timeline of Australian parliaments and Prime Ministers

Griffiths Report - Reference to Griffiths Committee Report 1989

Hilmer Report - Reference to National Competition Policy Review 1993

Harper Review - Reference to the 2014-2015 Competition Policy Review

ICN - International Competition Network

Market - Field of ravalry between firms in which there is substitution in response to changing prices

Market Power

Merger - see Merger page

NBN - National Broadband Network

NCC - National Competition Council

OECD - Organisation for Economic Co-operation and Development

PC - Productivity Commission

RPM - Resale Price Maintenance (vertical price fixing)

SLC- Substantial Lessening of Competition

TPC - Trade Practices Commission (now ACCC)

TPA - Trade Practices Act 1974 (since 1 Jan 2011, the Competition and Consumer Act 2010)


Economic terms and abbreviations

AAC - Average Avoidable Cost

AFC - Average Fixed Cost

ATC - Average Total Cost

AVR - Average Variable Cost

CAPM - Capital Asset Pricing Model

Cellophane fallacy - where there is an existing monopolist in market, use of prevailing price as proxy for competitive price in a SSNIP analysis will incorrectly lead to the rejection of the monopolised market as a relevant market - often resulting in the incorporation of implausible substitutes (named after the case of United States v El du Pont De Nemours & Co 351 US 377 (1956)

Elasticity - Extent to which demand changes in response to price change

ERP - Equity Risk Premium

HHI - Herfindahl–Hirschman Index (concentration metrix; in merger cases HHI is calculated by adding the sum of the squares of the post-merger market shares of each of the merging firms and each rival in the identified market. This estimates the level of market concentration both before and post merger - the change in concentration is referred to as the 'delta') (HHI is used by ACCC as measure of concentration: see Merger Guidelines 2008 para 7.9)

HMT - Hypothetical Monopolist Test (used in process of market definition - determined through use of SSNIP)

Lerner Index - Describes a firm's market power - defined as L = P-MC/P = 1/[E] (where E = elasticity of demand) (resulting index ranges between high of 1 (more market power) and low of 0 (no MP) (so the closer it is to 0 the closer it is to a perfectly competitive market; the closer to 1 the closer to monopoly)

LRAIC - Long-run Average Incremental Cost

Market - Field of ravalry between firms in which there is substitution in response to changing prices

MC - Marginal Cost (cost of producing last unit of output)

MP - Market Power

ROCE - Return on Capital Investment

ROR - Rate of Return

SLC- Substantial Lessening of Competition

SSNIP - Small but Significant Non-transitory Increase in Price

WACC - Weighted Average Cost of Capital