Does Antitrust Policy Promote Market Innovation and Competitiveness?

38 Pages Posted: 12 Jan 2016 Last revised: 6 Feb 2022

See all articles by Anu Bradford

Anu Bradford

Columbia Law School; Columbia University - Law School

Sharyn O'Halloran

Columbia University - School of International & Public Affairs

Nathaniel Sokol

Columbia University

Date Written: December 11, 2015

Abstract

Over the past three decades, antitrust laws have proliferated across the globe. International institutions and governments have promoted antitrust policy as an important regulatory tool to enhance economic performance. At the same time, we have scant empirical evidence on whether these policies actually work. Do they foster market competition, with the ensuing benefits of greater efficiency, economic prosperity and innovation? In other words, is the adoption of these antitrust laws good public policy and an efficient use of scarce public resources? Our research seeks to provide a theoretical and empirical foundation to these questions. We develop a novel dataset on antitrust laws and enforcement across time and jurisdictions that accounts for political and institutional nuances, and link these variables to patent data. This enables us to construct robust measures quantifying antitrust regimes and, for the first time, systematically test alternative hypotheses on the impact of antitrust policy on innovation. While our research focuses on antitrust policy, this project provides an analytical foundation for thinking about the determinants of regulatory policies and their relative ability to contribute to more innovative and competitive markets and, ultimately, to greater social welfare.

Keywords: regulation, antitrust, competition law and policy, economic institutions and performance

JEL Classification: H11, K21, L40, L51

Suggested Citation

Bradford, Anu and Bradford, Anu and O'Halloran, Sharyn and Sokol, Nathaniel, Does Antitrust Policy Promote Market Innovation and Competitiveness? (December 11, 2015). Available at SSRN: https://ssrn.com/abstract=2714009

Anu Bradford

Columbia Law School ( email )

435 West 116th Street
New York, NY 10027
United States

Columbia University - Law School ( email )

435 West 116th Street
New York, NY 10009

Sharyn O'Halloran (Contact Author)

Columbia University - School of International & Public Affairs ( email )

420 West 118th Street
New York, NY 10027
United States
(212) 854-3242 (Phone)
(212) 222-0598 (Fax)

Nathaniel Sokol

Columbia University

3022 Broadway
New York, NY 10027
United States

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