Rewriting the Horizontal Merger Guidelines in the Name of Dynamic Competition

10 Pages Posted: 14 May 2009 Last revised: 2 Nov 2009

J. Gregory Sidak

Criterion Economics, L.L.C.

David Teece

Institute for Business Innovation

Date Written: May 18, 2009

Abstract

We favor revision of the Horizontal Merger Guidelines. Our preliminary comments in this essay are based on a work in progress that we provisionally entitle, “Favoring Dynamic Competition over Static Competition.” The eventual paper will address, in greater detail than we can explore here, how government enforcement agencies and courts would apply a more explicitly dynamic model of competition to merger analysis. We pose the following question: How must competition policy evolve if it is explicitly to favor Schumpeterian (dynamic) competition over neoclassical (static) competition? Of course, one also could ask that question with respect to intellectual property law and sector-specific regulation of network industries. We intend to do so in our eventual paper.

Suggested Citation

Sidak, J. Gregory and Teece, David, Rewriting the Horizontal Merger Guidelines in the Name of Dynamic Competition (May 18, 2009). George Mason Law Review, Vol. 16, No. 4, pp. 885-894, 2009. Available at SSRN: https://ssrn.com/abstract=1403930

J. Gregory Sidak (Contact Author)

Criterion Economics, L.L.C. ( email )

1717 K Street, N.W.
Washington, DC 20006
United States
(202) 518-5121 (Phone)

HOME PAGE: http://www.criterioneconomics.com

David J. Teece

Institute for Business Innovation ( email )

F402 Haas School of Business, #1930
Berkeley, CA 94720-1930
United States
(510) 642-4041 (Phone)

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