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The Relevance for Antitrust Policy of Theoretical and Empirical Advances in Industrial Organization

22 Pages Posted: 28 Jun 2004  

Dennis W. Carlton

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Abstract

This paper discusses some of the recent theoretical and empirical advances in industrial organization over the last decade or two and explains their relevance, if any, to the analysis of antitrust problems. After discussing the very broad area of game theory, I move on to discuss some specific areas where theory has improved our understanding of certain industry practices, such as strategic behavior, raising rivals' costs and tie-ins. I also discuss some provocative work by Sutton that links high concentration to fierce competition. On the empirical side, I discuss some breakthroughs in structural demand estimation, merger simulation, and in the modeling of entry and exit. In the discussions of these new theoretical and empirical results, I highlight their likely relevance for antitrust practitioners.

Keywords: Antitrust and Industrial Organization

JEL Classification: L00, L40

Suggested Citation

Carlton , Dennis W., The Relevance for Antitrust Policy of Theoretical and Empirical Advances in Industrial Organization. George Mason Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=558366

Dennis W. Carlton (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
312-322-0215 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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