Antitrust Policy: Lessons from the US

Antitrust Policy: Lessons from the US

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Whether applied through US, European, or other national competition laws, antitrust has come to represent an important competition policy instrument that underlies many countries' public policies toward business. As a set of instruments whose goal is to make markets operate more competitively, however, antitrust often comes into direct conflict with regulatory policies, including forms of price and output controls, antidumping laws, access limitations, and protectionist industrial policies. Courts in the US have widely adopted economic analysis as the theoretical foundation for evaluating antitrust concerns. Yet, antitrust statutes in the European Union also place heavy emphasis on the role of economics. This article provides a view of antitrust primarily from the perspective of the US policy; the review that follows illustrates a theme that has worldwide applicability. This article highlights: (1) the early antibig business period in the US, in which the structure of industry was paramount; (2) the period in which performance as well as structure was given significant weight, and there was a systematic attempt to balance the efficiency gains from concentration with the inefficiencies associated with possible anticompetitive behavior; and (3) the most recent period, which includes the growth of high technology and network industries, in which firm behavior has been given particular emphasis.

Source Publication

International Encyclopedia of the Social & Behavioral Sciences

Source Editors/Authors

James D. Wright

Publication Date

2015

Edition

2

Volume Number

1

Antitrust Policy: Lessons from the US

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