Bigness and Farce

The key point Brandeis missed, says McCraw, was that while in all fields tighter forms of combination were attempted, their potential success ultimately depended on the technological and managerial limitations and possibilities uniquely inherent in each particular industry. In some industries, large, tight combinations had tremendous potential; in others, they were bound to fail under […]

Flying 20/20

Frank Lorenzo, head of Texas International Airlines: [I]f the Aviation Act of 1975[, which deregulated the airlines,] goes into effect, we will, over a period of years, end up with a couple of very large airlines. There will be many small airlines that will start up here and there, but they will never amount to […]

Facebook’s Refusal to Deal in Excellence

The emails released last week by a British parliamentary committee, in which Mark Zuckerberg can be read snooping on WhatsApp and approving a policy designed to cripple competition from Twitter, tell much about the shortcomings of antitrust policy today. The emails show that in 2013 Facebook cut off Twitter’s access to its users’ Facebook friend […]

On the Importance of the Concept of Monopoly in Introductory Economics

In everyday life economics presents itself to us first and foremost as a problem of distribution, not of output, not of what economists would call “allocative efficiency.” This pizza place is ripping you off. That employer is lowballing you. In our intuitive economics, higher prices mean someone is taking money out of our pockets and […]

The Impractical Consumer Welfare Standard

As I mentioned in an earlier post, the CPI/CCIA conference at Harvard Law School last month brought together establishment scholars from the left and right to consider the calls for radical antitrust reform emanating from the Open Markets Institute (OMI), calls that have captured the imagination of some sections of the press and the political […]