Does Antitrust Policy Improve Consumer Welfare? Assessing the Evidence
Journal of Economic Perspectives
vol. 17,
no. 4, Fall 2003
(pp. 3-26)
(Complimentary)
Abstract
This paper reviews the literature and assesses the effects of antitrust policy and enforcement on consumer welfare. We find no evidence that antitrust policy in the areas of monopolization, collusion, and mergers has provided much benefit to consumers and, in some instances, we find evidence that it may have lowered consumer welfare. We also do not find any evidence that antitrust policy has deterred firms from engaging in actions that could harm consumers. We identify various reasons for the apparent ineffectiveness of antitrust policy, offer preliminary policy recommendations, and suggest ways in which economists could more fully assess antitrust policy.Citation
Crandall, Robert, W., and Clifford Winston. 2003. "Does Antitrust Policy Improve Consumer Welfare? Assessing the Evidence." Journal of Economic Perspectives, 17 (4): 3-26. DOI: 10.1257/089533003772034871JEL Classification
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- K21 Antitrust Law
- L12 Monopoly; Monopolization Strategies
- L40 Antitrust Issues and Policies: General
- N41 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: Pre-1913
- N42 Economic History: Government, War, Law, International Relations, and Regulation: U.S.; Canada: 1913-
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