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Industrial Policy and Industrial Organization

  • Chapter
Competition, Efficiency, and Welfare

Abstract

Industrial policy is currently in a state of crisis. As recently as two decades ago something of a consensus vis-à-vis the role of industrial policy in the economy reigned throughout most of Europe and North America. At the heart of government policies towards business lie the triad of competition policy, or antitrust as the Americans like to call it, regulation, and public ownership. The increased irrelevance of competition policy, waves of deregulation and privatization around the globe has left the industrial policy debate in a state of confusion and disarray. For example, F.M. Scherer (1977, p. 977), who served as Director of the Bureau of Economics at the United States Federal Trade Commission (FTC), found the industrial policy debate “muddled and often contradictory. I frequently felt that if we knew precisely where we’re to go, we could proceed there in a more orderly fashion. But clear objectives were a luxury we seldom enjoyed, ambiguity was our guiding star.” Similarly, Dennis C. Mueller (1996, pp. 415–416) recently observed that,

The United States has the longest history of antitrust enforcement in the world, over 100 years now. Over this span, U.S. antitrust policy has waxed and waned in its vigor, but on average the U.S. has had the toughest and most vigorously enforced antitrust statutes in the world. In recent years, the wisdom of this policy has been questioned, the government has taken a noticeably more circumscribed approach to enforcing the antitrust laws, and the courts have become more lenient in interpreting them.

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Author information

Authors and Affiliations

  1. Georgia State University, Atlanta and CEPR, London, UK

    David B. Audretsch

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  1. David B. Audretsch
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Editors and Affiliations

  1. University of Vienna, Austria

    Dennis C. Mueller

  2. Deutsches Institut für Wirtshaftsforschung (DIW), Berlin, Germany

    Alfred Haid

  3. University of Erlangen-Nürnberg, Germany

    Jürgen Weigand

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Audretsch, D.B. (1999). Industrial Policy and Industrial Organization. In: Mueller, D.C., Haid, A., Weigand, J. (eds) Competition, Efficiency, and Welfare. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5559-9_12

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  • DOI: https://doi.org/10.1007/978-1-4615-5559-9_12

  • Publisher Name: Springer, Boston, MA

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