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How Antitrust Enforcement Can Spur Innovation: Bell Labs and the 1956 Consent Decree

By Martin Watzinger, Thomas A. Fackler, Markus Nagler, and Monika Schnitzer

American Economic Journal: Economic Policy, November 2020

Is compulsory licensing an effective antitrust remedy to increase innovation? To answer this question, we analyze the 1956 consent decree that settled an antitrust lawsuit against Bell, a vertically integrated monopolist charged with foreclosing the telec...