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Rethinking Antitrust Law in an Age of Network Industries

43 Pages Posted: 19 Nov 2007 Last revised: 21 Nov 2007

George L. Priest

Yale University - Law School

Date Written: 2007

Abstract

Economists have recognized the increasing role of network industries in our modern economy and have substantially advanced the understanding of network economics. This paper discusses how the special economic features of networks and, in particular, practices that networks adopt to enhance network benefits, requires a reconceptualization of modern antitrust analysis. The proposition is demonstrated by the example of several recent antitrust prosecutions of network practices where the economics of networks were largely ignored. The paper also discusses many cases in the antitrust canon that are more adequately analyzed when the network character of the practice is taken into account. The paper propose a reorganization of antitrust analysis to distinguish the fundamental economic analysis of network practices from the analysis of horizontal and vertical industrial practices.

Suggested Citation

Priest, George L., Rethinking Antitrust Law in an Age of Network Industries (2007). Yale Law & Economics Research Paper No. 352. Available at SSRN: https://ssrn.com/abstract=1031166

George L. Priest (Contact Author)

Yale University - Law School ( email )

P.O. Box 208215
New Haven, CT 06520-8215
United States

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