Paul Seabright, Paul Seabright, Nov 11, 2009
Professor Einer Elhauge has written a paper whose title (Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory) announces its large ambition—to drive a stake through the heart of the Chicago School’s Single Monopoly Profit theory. Perhaps I watch too many scary movies, but even after watching his valiant efforts I still sense an uncanny presence, as though the creature will continue to haunt competition policy in spite of his assurances. In this note I want to explain why I think the creature may have more resilience than he has anticipated. Its resilience matters: Professor Elhauge’s arguments are used to motivate a vision of the priorities for antitrust enforcement that may be seriously misguided if his optimism is unfounded.
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