Disruptive Equilibrium: Antitrust for an Innovation Economy

Abstract

Innovation is a flabby concept in antitrust practice, only coming into play in limited situations, as contrasted with its seeming ubiquity in the business pages. Lacking an accurate underlying conception of innovation, the current tools and theories of antitrust are inadequate. For innovation to be more muscular and better account for real world examples of innovation, antitrust analysis must be more attuned to innovation in business models, a framework describing how innovative firms attack established markets. Put bluntly, antitrust needs to be premised on a conception of competition that is less Detroit of yesterday and more Silicon Valley of today.

Keywords: Antitrust, Innovation, DOJ, FTC, Competition, Entrepreneurship

JEL Classification: L40