Structuralist Innovation: A Shaky Legal Presumption in Need of an Overhaul

CPI Antitrust Chronicle, December 2018

9 Pages Posted: 1 Feb 2019

See all articles by Dirk Auer

Dirk Auer

International Center for Law & Economics (ICLE)

Date Written: 2018

Abstract

The relationship between competition and innovation has puzzled economists for the last century. This had led to a growing body of work which ultimately concludes that no market structure is strictly superior at fostering innovation. Despite these findings, the European Commission has recently adopted a number of decisions – including the two Google cases – wherein it concludes that more firms in any given market will produce greater choice and more innovation for consumers. I call this the “Structuralist Innovation Presumption.” This paper shows that the Commission’s presumption is at odds with sound economics and that a more nuanced approach is required.

Suggested Citation

Auer, Dirk, Structuralist Innovation: A Shaky Legal Presumption in Need of an Overhaul (2018). CPI Antitrust Chronicle, December 2018, Available at SSRN: https://ssrn.com/abstract=3322383

Dirk Auer (Contact Author)

International Center for Law & Economics (ICLE) ( email )

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