Thursday, March 24, 2011

Freedom to Trade and the Competitive Process

Posted by D. Daniel Sokol

Aaron S. Edlin, University of California at Berkeley - Law and Joseph Farrell, University of California, Berkeley - Department of Economics explore Freedom to Trade and the Competitive Process.

ABSTRACT: Although antitrust courts sometimes stress the competitive process, they have not deeply explored what that process is. Inspired by the theory of the core, we explore the idea that the competitive process is the process of sellers and buyers forming improving coalitions. Much of antitrust can be seen as prohibiting firms’ attempts to restrain improving trade between their rivals and customers. In this way, antitrust protects firms’ and customers’ freedom to trade to their mutual betterment.

| Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Freedom to Trade and the Competitive Process:


Post a comment