Thursday, May 14, 2009
Posted by D. Daniel Sokol
ABSTRACT: This chapter aims at elucidating the economic basis for antitrust law generally, and the Israeli Restrictive Trade Practices Law specifically. It follows antitrust's intellectual progression, beginning with standard price theory underpinning static efficiency analysis, thereafter moving through dynamic (multi-period) analysis and 'new economics' of information and network effects.
Each part contains three sections: basic theory, 'question
marks' based on critique of the first, and 'back to law' - discussion of the
difficulties of implementation.
The purpose of the chapter is both to introduce the economics of antitrust to the uninitiated, and to raise questions central to debate regarding current antitrust doctrine.