Paul Heidhues

Paul Heidhues worked on topics in competition economics such as input-market bargaining power, merger control, collusion, and the functioning of markets when consumers are partly driven by psychological factors that the classical consumer model abstracts from. Much of his ongoing research focuses on the implications of consumer mistakes for imperfect competition and consumer-protection regulation. Paul is a member of DG Competition’s European Advisory Group on Competition Policy, of the UK‘s Competition and Markets Authority’s Academic Panel, and of the Bundeskartellamt’s Arbeitskreis Kartellrecht. His work appeared in leading academic journals such as the American Economic Review, Econometrica, the Quarterly Journal of Economics, and the Review of Economic Studies.

Google Search’s Exclusivity Payments Must Be Capped

Judge Amit Mehta will shortly provide his remedy to Google’s monopoly in internet search. Fiona Scott Morton and Paul Heidhues argue that the remedy must include a cap on Google’s payments to the mobile phone manufacturers, carriers, and web browsers that propelled its monopoly. Because any outright ban risks harming Google’s current partners in the short term, Judge Mehta should consider pursuing a flexible ban that instead limits the revenue these partners can receive from Google in order to encourage market entry and competition.

What We Learn About the Behavioral Economics of Defaults From the Google Search Monopolization Case

At the heart of the United States Google Search case is the monopolizing effect of Google securing for its own search offering the status of default search engine on a web browser, such as Safari, Chrome, or Firefox. The authors review the behavioral economics and empirical evidence of this effect and suggest several conduct and structural remedies to open up the search market to competition.

How Europe Can Enforce the Digital Markets Act Effectively 

As the European Commission gets ready to embark on the complicated task of implementing the recently agreed-upon Digital Market Act, which would regulate Big...

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