Capitalism, Democratic Capitalism, and the Pursuit of Antitrust Laws

The Antitrust Bulletin Vol. 58, No. 4/Winter 2013, pp. 693-729

Posted: 17 May 2019

See all articles by Raju Parakkal

Raju Parakkal

Thomas Jefferson University

Sherry Bartz

University of Miami

Date Written: September 11, 2013

Abstract

A major global policy development in the last few decades has been the adoption of national antitrust laws by many developing and transition countries. A primarily American creation, antitrust laws have now spread to nearly all corners of the world. This study undertakes a political economy approach to understanding the global adoption of antitrust laws. We focus on the causal connection between a democratic form of capitalism and antitrust adoption. We argue that the interaction of democracy with a pure form of capitalism results in a political economy characterized as “democratic capitalism.” On the basis of this understanding, we then develop a theoretically grounded conceptual model and offer multiple testable propositions. Our findings show that democratic capitalism, and not capitalism in its pure form, was instrumental in countries adopting national antitrust laws. We attribute this finding to the greater “transactional congruity” that exists between democratic capitalism and antitrust laws. We conclude by discussing the implications of this finding for future antitrust adoption.

Keywords: Antitrust Adoption, Democratic Capitalism, Political Economy

JEL Classification: K21, L40, P16

Suggested Citation

Parakkal, Raju and Bartz, Sherry, Capitalism, Democratic Capitalism, and the Pursuit of Antitrust Laws (September 11, 2013). The Antitrust Bulletin Vol. 58, No. 4/Winter 2013, pp. 693-729, Available at SSRN: https://ssrn.com/abstract=3374143

Raju Parakkal (Contact Author)

Thomas Jefferson University ( email )

4201 Henry Avenue
Ravenhill 207
Philadelphia, PA Philadelphia 19144
United States

Sherry Bartz

University of Miami ( email )

Coral Gables, FL 33124
United States

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