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February 07, 2008

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geoff

It seems to me that this argument leaves out the essential point that competition restrains possible "abuse by contract," not unit by unit negotiation of terms. All of the examples mustered by Molly and Justice Breyer are nice hypotheticals, but are they really likely in practice? Moreover, there is a real case to be made that the opportunity (and even worse, the acutality) of renegotiation of terms in these cases would be terribly inefficient. In other words, the inability to renegotiate may in fact be a feature, not a bug.

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