Freedom to Trade and the Competitive Process

10 Pages Posted: 15 Feb 2011  

Aaron S. Edlin

University of California at Berkeley; National Bureau of Economic Research (NBER)

Joseph Farrell

University of California, Berkeley - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 8, 2011

Abstract

Although antitrust courts sometimes stress the competitive process, they have not deeply explored what that process is. Inspired by the theory of the core, we explore the idea that the competitive process is the process of sellers and buyers forming improving coalitions. Much of antitrust can be seen as prohibiting firms’ attempts to restrain improving trade between their rivals and customers. In this way, antitrust protects firms’ and customers’ freedom to trade to their mutual betterment.

Keywords: Antitrust, Industrial Organization, Competition Policy, Law and Economics, Trade Regulation, Trade Restraints, Monopoly

JEL Classification: D2, D4, K2, L2,L4, L5, M2

Suggested Citation

Edlin, Aaron S. and Farrell, Joseph, Freedom to Trade and the Competitive Process (February 8, 2011). UC Berkeley Public Law Research Paper No. 1761581. Available at SSRN: https://ssrn.com/abstract=1761581 or http://dx.doi.org/10.2139/ssrn.1761581

Aaron S. Edlin (Contact Author)

University of California at Berkeley ( email )

Dept of Economics 549 Evans Hall #3880
Berkeley, CA 94720
United States
510-642-4719 (Phone)
510-643-0413 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Joseph Farrell

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States
510-642-9854 (Phone)
510-642-6615 (Fax)

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