The Risks of Radicalism: Exacerbating Harms from Type I Errors

Competition Policy International, 2020

9 Pages Posted: 6 May 2020

See all articles by Koren Wong-Ervin

Koren Wong-Ervin

Antitrust Partner at Axinn, Veltrop, & Harkrider LLP

Anne Layne-Farrar

Charles River Associates; Northwestern University

James Moore

Axinn Veltrop & Harkrider, LLP

Date Written: April 10, 2020

Abstract

Calls to radically change U.S. antitrust law continue to be a focus of law and policy makers. According to proponents of the proposed changes, drastic legislative amendments are necessary to remedy the (perceived) failures of current antitrust standards to prohibit anticompetitive conduct, in particular in high-technology markets. While efforts to address market failures are certainly worthy of discussion, the various legislative proposals risk serious adverse consequences, including higher prices for consumers and reduced innovation and consumer choice.

This article begins with a brief discussion of the economic basis for regulation, followed by a summary of recently proposed legislation from Senator Elizabeth Warren and Representative David Cicilline and from Senator Amy Klobuchar. The main part of this article is an exploration of the risks posed by these draft bills through a retrospective examination of market developments following past interventions by antitrust agencies.

Keywords: antitrust, legislation, mergers, vertical restraints, false positives

JEL Classification: K21, L4, L5

Suggested Citation

Wong-Ervin, Koren and Layne-Farrar, Anne and Moore, James, The Risks of Radicalism: Exacerbating Harms from Type I Errors (April 10, 2020). Competition Policy International, 2020. Available at SSRN: https://ssrn.com/abstract=3573102

Koren Wong-Ervin (Contact Author)

Antitrust Partner at Axinn, Veltrop, & Harkrider LLP ( email )

950 F Street, N.W.
Washington, DC
United States

Anne Layne-Farrar

Charles River Associates ( email )

1 South Wacker Drive
Suite 3400
Chicago, IL 60606
United States
312-377-9238 (Phone)

HOME PAGE: http://www.crai.com

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

James Moore

Axinn Veltrop & Harkrider, LLP ( email )

950 F Street, N.W.
Washington, DC
United States
202-469-3512 (Phone)

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