Thursday, December 20, 2012

Robert Bork’s Antitrust Paradox Or Why Competition Is So Crucial To Free Markets


Bork’s Insight

Reportedly, the book title refers to late Robert Bork’s most famous book. He argued that antitrust laws and jurisprudence is to serve consumer welfare and competition. While former goal is a vague and debatable term, however the latter goal of competition definitely deserves attention. Too often antitrust measures are aimed at preserving certain competitors or industries, which is totally irrelevant.

Free Markets And Competition Are Complementary

It is competition among companies, competition for markets and consumers that makes companies come and go or win and lose. It is a very dynamic process. Individual companies do not matter, they serve their purpose for as long as they survive competition.

One of the primary objectives of economic policy is to increase competition to the largest extent possible between domestic and foreign companies, between small and large companies and so on.

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