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Antitrust Economics on Trial, by Walter Adams, James W. Brock
Download PDF Antitrust Economics on Trial, by Walter Adams, James W. Brock
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Is it the central purpose of American antitrust policy to encourage decentralization of economic power? Or is it to promote "consumer welfare"? Is there a painful trade-off between market dominance and economic "efficiency"? What is the proper role of government in this area? In recent years the public policy debate on these core questions has been marked by a cacophony of divergent opinions--theorists against empiricists, apostles of the "new learning" against defenders of the traditional structure-conduct-performance paradigm, "laissez-faire" advocates against "interventionists." Utilizing a distinctively innovative format, Walter Adams and James Brock examine these issues in the context of a courtroom dialogue among a proponent of the new learning (Chicago School), a prosecuting attorney, and a U.S. district judge. In contrast to bloodless "scientific" treatises or ideologically inspired polemical tracts, this book lays bare the central arguments in the debate about free-market economics and the latent assumptions and disguised terminology on which those arguments are based. The dialogue is both gripping and entertaining--designed by the authors to be reminiscent at times of the Theater of the Absurd.
Originally published in 1991.
The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.
- Sales Rank: #14266469 in Books
- Brand: Brand: Princeton University Press
- Published on: 1991-10-23
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x 6.00" w x 1.00" l,
- Binding: Hardcover
- 152 pages
- Used Book in Good Condition
Review
"Critically examines, in an innovative and lighthearted fashion, the economic justification of the Chicago style approach to antitrust.... The book is extremely well documented.... Its fast pace and wit make for quite enjoyable reading."--Southern Economic Journal
Most helpful customer reviews
4 of 4 people found the following review helpful.
Dreadful Execution of a Great Idea
By D. W. MacKenzie
Adams and Brock came up with a great idea for a book on antitrust and industrial organization. Their approach of using a courtroom dialogue to discuss AT/IO economics is brilliant. This is as fun as economics reading gets.
The problem with this book is that it is riddled with falsehoods and straw men. Adams and Brock characterize Chicago theorists as ivory tower theorists, detached from reality. The fact of the matter is that Chicago economists stress empirics over theory. Much of the Chicago AT/IO literature comes from Coaseans who ridicule Ivory Tower "blackboard economics", and embrace case studies and data analysis. Adams and Brock explain Chicago theoretical concepts accurately, but their contention that Chicago theorists ignore empirical evidence is not merely incorrect, it is completely absurd.
For an overview of real Chicago "theory" (i.e. statistical evidence) look up Industrial Concentration: the New Learning. In particular read the following chapter: Two Systems of Belief about Monopoly by Harold Demsetz. Demsetz summarizes some of the main points from Chicago empirical literature on AT/IO economics in this chapter. Also look up "Antitrust and Monopoly: Anatomy of a Policy Failure " and "Antitrust: The Case for Repeal" by Dominick Armentano.
Adams and Brock do their readers a disservice with their book. The contents of this book are highly misleading, but its presentation is seductive. Well, its seductive as compared to most econ texts. Anyone who reads this book without first knowing the empirical literature that Adams and Brock ignore will walk away from it with many false impressions. To put it simply, this book is useful in explaining AT/IO economics only to those who already understand AT/IO economics. Don't take it seriously.
1 of 1 people found the following review helpful.
Strawmen abound
By Charles R. Greathouse IV
This book is based on a novel concept: instead of a dry textbook, a conversation between opposing sides is presented, ostensibly at a "trial". The format is clever enough, but the substance lacks. The expert representing the Chicago school is subject to a number of ad hominem attacks, presenting him (and thus the school) as detached from reality.
Make no mistake, this book exists for one reason only: to criticize the defenders of the Chicago school of economic thought. So blistering was the criticism, while couched in friendly words, that I felt forced to read one of their leading theorists, Becker. (I wasn't sufficiently familiar with the school.) Without making judgment between the two sides, I was taken aback by how different the actual tenents of the school were than as presented in Brock's book. Yes, each position is held by some person -- the citations are dense -- but Brock's attempt to meld all untenable positions of this school leads to a laughable strawman.
If you're looking for talking points, this book may suit your needs. Otherwise, take my word and pass on this one.
1 of 2 people found the following review helpful.
Interesting, open-ended
By A Customer
This is the same topic the authors have tackled in their other books, this time presented in a somewhat screenplay-ish format. Once again it is an argument between theory and evidence. As you read the discussion between the lawyer and the economist you wonder why the economist always retreats to theory in the face of evidence. It would interesting to hear a Chicago economist's explanation of the facts Adams and Brock bring to bear.
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