Consumer Surplus as the Appropriate Standard for Antitrust Enforcement
AbstractIn this paper, I argue that such transfers are likely overall to be quite regressive, and thus that a consumer surplus standard rather than a total welfare standard may be appropriate for antitrust. Two common arguments against this standardÃ¢â‚¬â€that most mergers are in markets for intermediate goods, and that a consumer welfare standard implies a tolerance for monopsonyÃ¢â‚¬â€are examined and found wanting. I argue in addition that, even if a total welfare standard is used, both the finance literature on merger outcomes and the structure of the U.S. enforcement agencies suggest that the use of a consumer surplus standard by the agencies is more likely to achieve that goal.
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Bibliographic InfoArticle provided by Competition Policy International in its journal CPI Journal CPI 3(2).
Volume (Year): 3 (2007)
Issue (Month): ()
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Web page: https://www.competitionpolicyinternational.com
Other versions of this item:
- Russell Pittman, 2007. "Consumer Surplus as the Appropriate Standard for Antitrust Enforcement," EAG Discussions Papers 200709, Department of Justice, Antitrust Division.
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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