Their Implications for Competition Law
Edited by Michal S. Gal, Mor Bakhoum, Josef Drexl, Eleanor M. Fox and David J. Gerber
Chapter 11: Consumer welfare and consumer harm: adjusting competition law and policies to the needs of developing jurisdictions
Competition economics and industrial organization theory in particular claim universal validity. This is based on neoclassical price theory as its theoretical foundation, which explains that economies suffer a welfare loss if they do not act against monopolistic behaviour. Thus, economic theory informs about the economic benefits of competition law and helps define its objectives. Based on a universal economic understanding, competition law aims at enhancing consumer welfare through banning anti-competitive conduct. Indeed, many competition economists and lawyers would apply such economic reasoning intuitively to all jurisdictions, inspired by a belief that the fundamental rules of how markets work are universal. Economic theory, including the goal of promoting consumer welfare, thereby emerges as the common ground of ‘global antitrust’ that creates a basis for convergence of the competition laws across different jurisdictions. This ‘world-view’ is presented in the Preface to the Global Competition Law and Economics by Elhauge and Gerardin, who describe ‘modern antitrust as global antitrust’ and identify the ‘common framework of antitrust economics’ as the theoretical foundation that links the different competition law systems of the world despite persisting differences.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.