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Vol. I Explaining why market definitions are inherently arbitrary, this publication defines oligopolistic and predatory business conduct, analyzes their profitability and provides a critique of the market-oriented approach used by US and EU law-enforcement. Vol. II The standard analysis of anti-trust legislation ignores numerous inefficiencies. This distortion-analysis approach responds appropriately to second-best theory and uses it to analyze the economic efficiency of business conduct covered by anti-trust law.