Author(s)
Source
Economic Inquiry, Vol. 30, 1992
Summary
This paper describes how economists influence competition (antitrust) law.
Policy Relevance
Competition law changes to adopt new economic ideas.
Main Points
- Antitrust laws like the Sherman Act are quite ambiguous. Courts look to economists for help understanding how the law is to be applied.
- U.S. courts are decentralized, allowing for judges to explore different concepts.
- Individual judges’ preferences and the political environment play a significant role in how new economic concepts enter the law. Legal scholars who adapt economics to the law might have more influence than academic economists.
- Economists are highly paid to testify in competition cases, and this might make their views less objective.
- Within government agencies the influence of economics depends on the economics bureaus and leadership.