Encyclopedia of Law and Economics
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Encyclopedia of Law and Economics

Edited by Gerrit De Geest

The second, expanded edition of the acclaimed Encyclopedia represents a major update of the most authoritative reference work in the field of law and economics and the nine print volumes are now released online as a single integrated product. The Encyclopedia provides balanced and comprehensive coverage of the major domain in law and economics, including: criminal law, regulation, property law, contract law, tort law, labor and employment law, antitrust law, procedural law, and the production of legal rules. Each theme or volume is overseen by a leading scholar and each of the 156 entries is prepared by an expert in the field, providing an in-depth and authoritative overview of the individual topic, combined with an exhaustive bibliography, allowing users to access and filter the entire corpus of literature in law and economics. As with the print edition, the Encyclopedia is unique in serving both as an entry point and a platform for advanced research. The online edition is enhanced with Elgaronline’s powerful search tools, facilitating the search for key terms across the entire Encyclopedia, whilst the browse function allows users to move seamlessly between the volumes. These elements combine to create a powerful research tool for any researcher or scholar in the field of law and economics.
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[In: Volume 4, Keith N. Hylton (ed) Antitrust Law and Economics]

This collection of chapters on fundamental topics in antitrust was arranged with the goal of presenting the subject in a manner that reflects modern thinking in both the law and the economics of antitrust. That is not an easy task. Antitrust economics has become a very complicated field. It requires specialization, and as a result it is quite difficult to stay abreast of both the law and the modern economic treatments.

Any effort to provide a balance of legal and economic analysis, given the long history of the law and the level of sophistication in modern economic research, will necessarily involve some sacrifice of both approaches. I am not sure it is possible to present a book that offers the combination of everything an antitrust law specialist would like to see, as well as everything an antitrust economist would like to see. But I think it is better to sacrifice a bit from both of the endpoints to produce something that blends the two approaches, which is what this volume attempts to do.

The argument for incorporating economic analysis in any modern discussion of antitrust law is obvious today. American courts use economic reasoning to reach conclusions on the best policies to adopt in antitrust cases. American antitrust litigation relies heavily on the input of experts trained in economics and statistics. It would be educational malpractice to train any law student to practice antitrust without communicating the importance of economic analysis to the student.

In Europe, the importance of economic analysis to antitrust (competition law as it is known in Europe) is even greater than in the US. The European Commission (EC) tries to act as a scientific body on matters of competition law. It employs economists to develop the competition norms that the EC would like to enforce, and relies on economists to determine the soundness of its enforcement actions. Moreover, since the European courts tend to defer to the EC on matters of policy, economists have a much greater pull on the development of law in the EU than in the US. This has provided enormous incentives for European economists to examine industrial organization issues at the heart of competition law cases.

The argument for incorporating a sophisticated legal approach to the analysis of antitrust has become less obvious today. But its importance should not be discounted. Economic analyses of antitrust divorced from serious consideration of the law tend to meander off into issues that are of little relevance to the courts. More importantly, and especially in the p. xiiUS, judges have to administer antitrust law, not economists. Judges have to craft rules that can be applied consistently and predictably within the courts. Judges have to consider the likelihood that any given rule will be applied erroneously by future courts, and the costs of those mistakes. The rules that have been developed by courts reflect these considerations. In order to apply economics in a manner that will be useful to courts, the analysis has to be guided by a sense of what will work in application. Lawyers tend to have the advantage on this question.

The authors who have contributed to this volume have the great advantage, in my view, of being familiar with both the law and the economics of antitrust. I hope that this effort to synthesize the two approaches to antitrust yields a sum greater than its parts.