A PYMNTS Company

The Economics of Welfare Standards in Antitrust

By  |  October 16, 2006
The Economics of Welfare Standards in Antitrust

Joseph Farrell, Michael Katz, Nov 01, 2006

There has been considerable debate concerning whether consumer surplus or total surplus should be the welfare standard for antitrust. This debate misses two critical issues. First, antitrust is not straightforwardly welfarist. It does not maximize but protects, and it does not forbid all actions that seem likely to lower some welfare measure. Second, the enforcement process involves multiple steps and multiple decision makers. The authors conclude that, while some popular arguments for a consumer surplus standard are weak, other arguments have some merit.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Links to Full Content