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After thirty years, the debate over antitrust's ideology has quieted. Most now agree that the protection of consumer welfare should be the only goal of antitrust laws. Execution, however, is another matter. The rules of antitrust remain unfocused, insufficiently precise, and excessively complex. The problem of poorly designed rules is severe, because in the short run rules weigh much more heavily than principles. At bottom, antitrust is a defensible...
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Description
"In Are Predatory Commitments Credible? Who Should the Courts Believe? John Lott provides long-awaited empirical analysis of predatory pricing. By examining firms accused of or convicted of predation over a thirty-year period, he shows that these firms are not organized as game-theoretic or other models of predation would predict. In contrast, what evidence exists for predation suggests that government enterprises are more of a threat and are more...
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