Protecting Competition in the American Economy: Merger Control, Tech Titans, Labor Markets

Journal of Economic Perspectives, Forthcoming

23 Pages Posted: 21 Jun 2019

See all articles by Carl Shapiro

Carl Shapiro

University of California, Berkeley - Haas School of Business

Date Written: June 12, 2019

Abstract

Accumulating evidence points to the need for more vigorous antitrust enforcement in the United States in three areas. First, stricter merger control is warranted in an economy where large, highly efficient and profitable “superstar” firms account for an increasing share of economic activity. Evidence from merger retrospectives further supports the conclusion that stricter merger control is needed. Second, greater vigilance is needed to prevent dominant firms, including the tech titans, from engaging in exclusionary conduct. The systematic shrinking of the scope of the Sherman Act by the Supreme Court over the past 40 years may make this difficult. Third, greater antitrust scrutiny should be given to the monopsony power of employers in labor markets.

Suggested Citation

Shapiro, Carl, Protecting Competition in the American Economy: Merger Control, Tech Titans, Labor Markets (June 12, 2019). Journal of Economic Perspectives, Forthcoming . Available at SSRN: https://ssrn.com/abstract=3405501 or http://dx.doi.org/10.2139/ssrn.3405501

Carl Shapiro (Contact Author)

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States
510-642-5905 (Phone)

HOME PAGE: http://faculty.haas.berkeley.edu

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