Influence of Economics on Antitrust Law, The

Competition Policy and Antitrust

Article Snapshot

Author(s)

William E. Kovacic

Source

Economic Inquiry, Vol. 30, 1992

Summary

This paper describes how economists influence competition (antitrust) law.

Policy Relevance

Competition law changes to adopt new economic ideas.

Main Points

  • Antitrust laws like the Sherman Act are quite ambiguous. Courts look to economists for help understanding how the law is to be applied.
    • U.S. courts are decentralized, allowing for judges to explore different concepts.

  • Individual judges’ preferences and the political environment play a significant role in how new economic concepts enter the law. Legal scholars who adapt economics to the law might have more influence than academic economists.

  • Economists are highly paid to testify in competition cases, and this might make their views less objective.

  • Within government agencies the influence of economics depends on the economics bureaus and leadership.

Get The Article

Find the full article online

Search for Full Article

Share