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The Efficiency Paradox

HOW THE CHICAGO SCHOOL OVERSHOT THE MARK: THE EFFECT OF CONSERVATIVE ECONOMIC ANALYSIS ON U.S. ANTITRUST, R. Pitofsky, ed., Oxford, p. 77, 2008

NYU Law and Economics Research Paper No. 09-26

18 Pages Posted: 12 Jul 2009  

Eleanor M. Fox

New York University School of Law

Date Written: July 8, 2009

Abstract

The article assumes arguendo that efficiency is the sole goal of antitrust. It then observes that how to achieve efficiency by applications of antitrust law is not obvious; that there are various routes towards attempting to achieve efficiency, and Chicago School advocates have picked one based on a principle of non-intervention rather than one based on a principle of trust in rivalry and open markets. The article shows how application of the non-intervention principle protects dominant firms from the competition of their rivals and in that connection deprives the market of efficiencies. Robert Bork argued in THE ANTITRUST PARADOX: in the name of competition, antitrust harmed competition. Professor Fox now argues: in the name of efficiency, conservative advocates and jurists harm efficiency. This is The Efficiency Paradox of her title.

Suggested Citation

Fox, Eleanor M., The Efficiency Paradox (July 8, 2009). HOW THE CHICAGO SCHOOL OVERSHOT THE MARK: THE EFFECT OF CONSERVATIVE ECONOMIC ANALYSIS ON U.S. ANTITRUST, R. Pitofsky, ed., Oxford, p. 77, 2008; NYU Law and Economics Research Paper No. 09-26. Available at SSRN: https://ssrn.com/abstract=1431558

Eleanor M. Fox (Contact Author)

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States
212-998-6171 (Phone)

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