Antitrust, Innovation, and Competitiveness

By Thomas M. Jorde; David J. Teece | Go to book overview
Save to active project

however, efficiency features are often deeply embedded, then there appears to be no alternative but to engage the issues on their own terms.

The notion that "ideas, not vested interests" drive policy outcomes is understandably attractive to academics. Sometimes, perhaps often, this is wishful thinking. But as Theodore Frech argues, and I agree, "a genuine scientific revolution has occurred... [and] has led to a more thoughtful and rational approach to antitrust" ( 1987, p. 263). Indeed, William Baxter's forcefulness notwithstanding, "it would have been politically impossible for... Baxter to have done what he did [as Assistant Attorney General for Antitrust], had there not been an intellectual shift in the underpinnings of antitrust" ( Bork, 1985, p. 25).

There are, to be sure, needs to consolidate the gains. A more deliberate use of microanalytic reasoning, to which I refer, should help to accomplish this.


NOTES
1.
The discussion of D'Andrade is based on Donald McCloskey book review of Metatheory in Social Science ( McCloskey, 1986).
2.
See Williamson ( 1991).
3.
Note, however, that strategic anticompetitive purposes can be realized only if the preconditions for monopoly power are satisfied--which is the exception rather than the rule. As discussed elsewhere, the critical preconditions are high concentration coupled with high hurdles to entry ( Williamson, 1977, pp. 292-93). Paul Joskow and Alvin Klevorick ( 1979, pp. 225-31) and Januz Ordover and Robert Willig ( 1981) concur. Frank Easterbrook ( 1984) also uses a structural test as his first antitrust "filter." Also see Williamson ( 1987).
4.
In re Foremost Dairies, Inc., 60 F.T.C. 944, 1084 ( 1962).
5.
Federal Trade Commission v. Procter & Gamble Co., 386 U.S. 568, 574 ( 1967).
6.
The disclaimer of efficiencies appeared in Procter & Gamble's brief as Respondent in the Clorox Litigation. See Fisher and Lande ( 1983, p. 1582, n. 5).
7.
United States v. Von's Grocery Co., 384 U.S. 270, 301 ( 1966) ( Stewart, J., dissenting).
8.
The phrase was used repeatedly by Walter Adams in his testimony in the Purex v. Procter & Gamble Co. case.
9.
The quotation is attributed to Donald Turner by Stanley Robinson, N.Y. State Bar Association, Antitrust Symposium, 1968, p. 29.
10.
United States v. Arnold, Schwinn & Co., 388 U.S. 365 ( 1967).
11.
Brief for the United States at 47 ( U.S. v. Schwinn, note 32).
13.
In principal, Arnold Harberger's ( 1954) analysis of economywide welfare losses of monopoly was pertinent. But this theory operated at a very high level of aggregation and was too removed from firm and market particulars. His later and more general treatment is more germane ( Harberger, 1971).
14.
On the application of the partial equilibrium welfare economics model to economies as an antitrust defense, see Williamson ( 1968, 1977) and Fisher and Lande ( 1983). The latter is much more skeptical.
15.
Bain was among the first to acknowledge the merits of an economies defense in assessing mergers ( 1968, p. 658). Wesley Liebeler ( 1978), Robert Bork ( 1978), and Timothy Muris ( 1979) have all made extensive use of the partial equilibrium trade-off model in their insistence that antitrust enforcement that proceeds heedless of tradeoffs is uninformed and contrary to the social interest.

-158-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Antitrust, Innovation, and Competitiveness
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 246

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?