ACADEMIC ARTICLE SUMMARY

Federalism In Antitrust

Article Source: Harvard Journal of Law & Public Policy, Vol. 23, 1999; AEI-Brooking Joint Center Working Paper No. 02-09, 2002
Publication Date:
Time to Read: 1 minute read
Written By:

 Anne Layne-Farrar

Anne Layne-Farrar

 Robert W. Hahn

Robert W. Hahn

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ARTICLE SUMMARY

Summary:

This paper asks what role the state should play in national competition policy.

POLICY RELEVANCE

Policy Relevance:

The States' role in national competition policy should be limited, so that local interests do not sway these policies to benefit themselves at national expense.

KEY TAKEAWAYS

Key Takeaways:
  • States best represent consumers and firms within their borders, but not consumers nationally.

  • In the antitrust suit against Microsoft, the states’ involvement was clearly motivated by lobbying from Microsoft’s competitors. The states made the suit more long, complicated, confusing, and expensive.

  • National antitrust cases involve difficult economic issues and the states lack the expertise to perform this analysis.

  • Nations, like individual states, could use competition policy to pass costs to consumers in other countries, but global competition policy is not practicable for now.

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