Sidak and Teece on Dynamic Competition

3 November 2009 at 8:35 am Peter G. Klein 2 comments

| Peter Klein |

A “neo-Schumpeterian” framework for antitrust analysis that favors dynamic competition over static competition would put less weight on market share and concentration in the assessment of market power and more weight on assessing potential competition and enterprise-level capabilities. By embedding recent developments in evolutionary economics, the behavioral theory of the firm, and strategic management into antitrust analysis, one can develop a more robust framework for antitrust economics.

Via Truth on the Market (where my colleague Mike Sykuta has joined the blogging team). On a related note, see Jesús Huerta De Soto’s Theory of Dynamic Efficiency. It was a pleasure meeting De Soto at last week’s fantastic Mises conference in Salamanca, where he spoke on dynamic efficiency (based on the book’s first chapter). You have to love medieval university towns. We held our meetings in the Convent of San Esteban, including breakfast in the room where Christopher Columbus reportedly waited to hear if Queen Isabella would finance his little expedition West.

Entry filed under: - Klein -, Austrian Economics, Law and Economics, Public Policy / Political Economy.

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2 Comments Add your own

1. Ty Mackey | 3 November 2009 at 10:59 am

On the other hand, how much faith do you have in the ability of government to accurately “assess potential competition and enterprise-level capabilities?”
2. Peter Klein | 3 November 2009 at 2:13 pm

Ty, I’m shocked, shocked, that you would say such a thing.

There is certainly a rules-versus-discretion issue that needs further discussion. . . .