Monday, August 17, 2009
Posted by D. Daniel Sokol
ABSTRACT: The article assumes arguendo that efficiency is the sole goal of antitrust. It then observes that how to achieve efficiency by applications of antitrust law is not obvious; that there are various routes towards attempting to achieve efficiency, and Chicago School advocates have picked one based on a principle of non-intervention rather than one based on a principle of trust in rivalry and open markets. The article shows how application of the non-intervention principle protects dominant firms from the competition of their rivals and in that connection deprives the market of efficiencies. Robert Bork argued in THE ANTITRUST PARADOX: in the name of competition, antitrust harmed competition. Professor Fox now argues: in the name of efficiency, conservative advocates and jurists harm efficiency. This is The Efficiency Paradox of her title.