Has the Obama Justice Department Reinvigorated Antitrust Enforcement?

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1 Response

  1. Jarod Bona says:

    I look forward to reading this article. Antitrust is interesting in that the current-day purpose of it is to foster competition. But that is a delicate balance because over-enforcement in many instances actually hurts competition more than just leaving things alone. A simple example is predatory pricing. While it is theoretically possible for a firm with market-power to price below its costs, wait for its rivals to perish, then raise prices to monopoly levels, in the real world this isn’t very successful. But government and civil enforcement of predatory pricing (or other pricing practices centered on reduced prices like bundling, loyalty discounts, etc.) may itself hurt competition because companies with market power will be deterred from cutting prices. This is the simplied version, but it is a very interesting area.