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A Critical Evaluation of the Chicago School of Antitrust Analysis

  • Authors
  • Ingo L. O. Schmidt
  • Jan B. Rittaler

Part of the Studies in Industrial Organization book series (SIOR, volume 9)

Table of contents

  1. Front Matter
    Pages i-xvii
  2. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 1-2
  3. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 3-15
  4. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 17-20
  5. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 21-64
  6. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 65-91
  7. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 93-103
  8. Ingo L. O. Schmidt, Jan B. Rittaler
    Pages 105-117
  9. Back Matter
    Pages 119-132

About this book

Introduction

The publication of this clinically analytical and trenchantly insightful volume is felicitously timed. By fortuitous coincidence, it comes at a time when the Chicago School enjoys a high-water mark of acceptance in U.S. legal circles, and at a time when the U.S. merger movement of the 1980s is cresting. It provides a welcome warning against the dangers of translating abstract theories, based on highly restrictive (and unrealistic) assumptions, into facile public policy recommendations. As such the Schmidt/Rittaler study serves as a needed antidote to the currently fashionable predilection to confuse ideology with science. In the Chicago lexicon, the only appropriate policy toward business is a policy of untrammeled laissez-faire. Because there are no market imperfec­ tions (other than government-created or trade-union-generated monopolies), the market can be trusted to regulate economic activity, inexorably meting out appropriate rewards and punishments. In this ideal world, corporate size and power can be safely ignored. After all, corporations become big only only because they are efficient, only because they are productive, only because they have served consumers better than their rivals, and only because no newcomers are good enough to challenge their dominance. Once an industrial giant becomes lethargic and no longer bestows its productive beneficence on society, it will inevitably wither and eventually die. This is the "natural law" that governs economic life. It demands obedience to its rules. It tolerates no interference by the state.

Keywords

Advertising competition consumer deregulation efficiency evaluation fashion market structure merger mergers pricing public policy regulation trust welfare

Bibliographic information

  • DOI https://doi.org/10.1007/978-94-009-2567-0
  • Copyright Information Springer Science+Business Media B.V. 1989
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-94-010-7660-9
  • Online ISBN 978-94-009-2567-0
  • Series Print ISSN 0924-4646
  • Buy this book on publisher's site