The Misguided Assault on the Consumer Welfare Standard in the Age of Platform Markets
Review of Industrial Organization, Volume 54, Issue 4, June 2019, Pages 741-774
48 Pages Posted: 3 Oct 2018 Last revised: 13 Feb 2020
Date Written: October 30, 2018
This paper discusses the recent scholarly and policy attack against the consumer welfare (“CW”) standard. It shows that the CW standard is not the explanatory factor for perceived low levels of antitrust enforcement in the US. The arguments made against the CW standard reflect a misunderstanding of its purpose and effects. Moreover, any deviation from the CW framework would likely weaken antitrust enforcement in the platform age.
Keywords: Antitrust, Competition Law, Consumer Welfare, Monopoly, Market Power, Platform
JEL Classification: K20, K21, L41, L4, L10, L20
Suggested Citation: Suggested Citation