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Oligopoly Coordination, Economic Analysis, And The Prophylactic Role Of Horizontal Merger Enforcement, Jonathan Baker, Joseph Farrell

Articles in Law Reviews & Other Academic Journals

This article takes a fresh look at a longstanding issue in antitrust economics and policy: the problem of oligopoly coordination. First, it explains why coordinated conduct in oligopoly markets is a serious problem and an appropriate concern of antitrust enforcement. It shows that empirical economic studies, experimental results, real-world examples, and economic theory do not support the claims of antitrust commentators and courts influenced by the Chicago school that coordination is unlikely absent express collusion and that express collusion itself is uncommon. Second, it clarifies that coordinated outcomes can arise both from “purposive” conduct, when firms attempt to develop a …