ECONOMICS IN ANTITRUST POLICY

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economics in antitrust policy-9781581123708

Sinopsis de ECONOMICS IN ANTITRUST POLICY

In the field of antitrust, the freedoms to contract and compete can and do contradict. Profit-maximizing companies desire perfectly competitive input markets to minimize their costs, but want monopolistic markets for their outputs to maximize their profits. Consequently, they have strong incentives to undermine competition in their output markets. In a world without antitrust laws, many companies would thus eliminate competition by using their freedom to contract, either by entering into legally enforceable agreements which fix prices or divide up markets, or by merging and acquiring rivals to gain market control. Therefore, guaranteeing and safeguarding companies abilities to compete comes at the cost of restricting their freedoms to contract. The states role in this task is a delicate one though
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