21 Pages Posted: 16 Oct 2008
Date Written: October 15, 2008
This comment on a forthcoming article by Keith Hylton and David Evans explains why considerations of "dynamic competition" do not argue against antitrust enforcement. While the prospect of achieving monopoly may foster innovation, that observation misleads as to appropriate antitrust policy unless qualified by the observation that the push of competition generally spurs innovation more than the pull of monopoly. Moreover, the longstanding doctrinal rule that mere monopoly pricing is not illegal should not be read as demonstrating that antitrust law values monopolies for their role in promoting innovation.
Keywords: antitrust, innovation, monopolization
JEL Classification: K21, L4
Suggested Citation: Suggested Citation