Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Protecting Competition in the American Economy: Merger Control, Tech Titans, Labor Markets
Journal of Economic Perspectives
vol. 33,
no. 3, Summer 2019
(pp. 69–93)
(Complimentary)
Abstract
Accumulating evidence points to the need for more vigorous antitrust enforcement in the United States in three areas. First, stricter merger control is warranted in an economy where large, highly efficient and profitable "superstar" firms account for an increasing share of economic activity. Evidence from merger retrospectives further supports the conclusion that stricter merger control is needed. Second, greater vigilance is needed to prevent dominant firms, including the tech titans, from engaging in exclusionary conduct. The systematic shrinking of the scope of the Sherman Act by the Supreme Court over the past 40 years may make this difficult. Third, greater antitrust scrutiny should be given to the monopsony power of employers in labor markets.Citation
Shapiro, Carl. 2019. "Protecting Competition in the American Economy: Merger Control, Tech Titans, Labor Markets." Journal of Economic Perspectives 33 (3): 69–93. DOI: 10.1257/jep.33.3.69Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- G38 Corporate Finance and Governance: Government Policy and Regulation
- K21 Antitrust Law
- L41 Monopolization; Horizontal Anticompetitive Practices