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Full-Text Articles in Law
Anticompetitive Mergers In Labor Markets, Ioana Marinescu, Herbert J. Hovenkamp
Anticompetitive Mergers In Labor Markets, Ioana Marinescu, Herbert J. Hovenkamp
Indiana Law Journal
Mergers of competitors are conventionally challenged under the federal antitrust laws when they threaten to lessen competition in some product or service market in which the merging firms sell. In many of these cases the threat is that in concentrated markets—those with only a few sellers—the merger increases the likelihood of collusion or collusion-like behavior. The result will be that the post-merger firm will reduce the volume of sales in the affected market and prices will rise.
Mergers can also injure competition in markets in which the firms purchase, however. Although that principle is widely recognized, very few litigated cases …
Competition Policy For Labour Markets, Herbert J. Hovenkamp
Competition Policy For Labour Markets, Herbert J. Hovenkamp
All Faculty Scholarship
Competition law in many jurisdictions defines its consumer welfare goal in terms of low consumer prices. For example, mergers are challenged when they threaten to cause a price increase from reduced competition in the post-merger market. While the consumer welfare principle is under attack in some circles, it remains the most widely expressed goal of antitrust policy.
We would do better, however, to define consumer welfare in terms of output rather than price. Competition policy should strive to facilitate the highest output in any market that is consistent with sustainable competition. That goal is in most ways the same as …