Author(s)
Robert W. Hahn
Source
AEI-Brookings Joint Center Policy Matters 00-06; Washington Post, May 25, 2000
Summary
This paper looks at how public policy should change to regulate high-tech firms.
Policy Relevance
Big high-tech firms like Microsoft bring benefits in the new economy. If we keep using old antitrust laws to regulate them, we'll hinder growth.
Main Points
- The antitrust suit against Microsoft was based on the view that antitrust law did not need to change.
- However, Treasury Secretary Lawrence Summers recognized that in the new economy, investors needed “temporary monopoly power” to recover their investment, otherwise prices would be driven below cost.
- Regulation in this sphere could end innovation and economic growth.
