Antitrust Law: Economic Theory and Common Law Evolution by Keith N. Hylton

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By Keith N. Hylton

This booklet consolidates a number of various views on antitrust legislation. First, Keith Hylton offers a close description of the legislations because it has built via a number of judicial evaluations. moment, he provides designated fiscal reviews of the judicial reviews, drawing seriously from legislation and economics journals. 3rd, he integrates a jurisprudential standpoint that perspectives antitrust as a colourful box of universal legislations. This final point of view leads him to deal with problems with walk in the park, balance, and predictability in antitrust legislation, and to check the pressures shaping its evolution.

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Admittedly, the private barrier theory can go to an absurd extreme. Consider the necessity of building a plant in order to produce the good. Is this also a privately created entry barrier? If building a plant is not a privately created entry barrier, then why is it a privately created barrier to form an exclusive dealing arrangement with the only supplier of a vital input? One could say that in the former case, any potential rival could build his own plant, while the latter example involves an exclusive arrangement that cannot be duplicated.

Exclusive dealing contracts create barriers by foreclosing the market to rivals. For example, if firm A has an exclusivity contract with the only supplier of a vital input, it would be difficult for a rival to enter and compete against firm A. Product tying also tends to exclude 16 Economics rivals by forcing them to enter at two levels (the tying and tied product) in order to compete against the seller of the bundled product. 8 On one extreme is the expansive view suggested in the work of Joe Bain,9 and on the other the view, suggested in the work of Harold Demsetz,10 that the government creates the only real entry barriers – and even then the concept is troubling in Demsetz’s view because government necessarily plays an important role in defining property rights.

8 On one extreme is the expansive view suggested in the work of Joe Bain,9 and on the other the view, suggested in the work of Harold Demsetz,10 that the government creates the only real entry barriers – and even then the concept is troubling in Demsetz’s view because government necessarily plays an important role in defining property rights. George Stigler11 took an intermediate position, labeling such things as product differentiation a barrier to entry only if the cost of differentiating a product is higher for an entrant than an incumbent firm.

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