Antitrust and Competition Policy

Competitiveness depends on a healthy process of innovation and dynamic improvement—e.g., new products, new processes, and new ideas—that drive the growth in productivity. Antitrust policy, however, remains focused on static goals such as profitability (allocative efficiency) and cost minimization. It continues to rely heavily on seller concentration per se as an indicator of healthy competition. The primary focus of antitrust in the United States should be on productivity growth and innovation. The need for a vigorous antitrust policy is greater than ever, made more rather than less important by developments in global competition. However, antitrust authorities must use new approaches to evaluating the health of competition and the threat to competition posed by mergers and other corporate practices.

“Competition and Antitrust: Towards a Productivity-based Approach to Evaluating Mergers and Joint Ventures”  (pdf)
     Michael E. Porter
     Antitrust Bulletin, Winter 2001.
     (Revised June 2002)
This article seeks to contribute thinking on how the intellectual foundations of antitrust might be updated, based on a large body of theoretical and empirical research on company strategy, competition, and economic development. The aim is to outline a new direction for antitrust that can be incorporated into government policy and legal practice and pursued in litigation and legislation, both in the United States and internationally.
 

Also published in:
Unique Value
     Charles D. Weller, Ed., December 2004

“Perspectives on Fundamental Antitrust Theory” (pdf)
     Report of the Task Force on Fundamental Theory
     American Bar Association Section of Antitrust Law. 
     July, 2001

"Competition and Antitrust"  (pdf)
    Michael E. Porter
    Presentation to the American Bar Association,
    Section of Antitrust Law,
    Fundamental Theory Task Force
    Washington, DC
    January 11, 2001

"Competition and Antitrust"  (pdf)
     Michael E. Porter
     Presentation to the Canadian Competition Policy:
     Preparing for the Future conference
     Jointly sponsored by Canada's Competition Bureau,
     Industry Canada, and the Ivey School of Business
     Toronto, Canada
     June 19-20, 2001