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The Chicago School, the Post Chicago School, and the New Brandeisian Schools of Antitrust: Who Is Right in Light of Modern Economics?
The rapid expansion of digital health services and telemedicine introduces new dimensions to competition law enforcement in healthcare. This paper explores strategic recommendations to enhance Indonesia's competition law in healthcare by focusing on strengthening regulatory institutions, improving judicial consistency, fostering private enforcement mechanisms, and developing targeted policies for emerging digital health markets. This study employs a comparative legal analysis approach, integrating qualitative and normative research methods, to examine the effectiveness of existing competition law frameworks governing healthcare in the United States and Indonesia, identifying best practices, challenges, and opportunities for improvement. The findings reveal stark contrasts in competition law enforced between the two countries, particularly in market concentration, regulatory oversight, judicial intervention, and private litigation mechanisms. By adopting a framework that fosters industry sustainability while preventing anti-competitive behavior, Indonesia can create a more competitive, innovative, and accessible healthcare system that benefits both pharmaceutical companies and consumers alike.
This paper explores from a historical perspective the process of financialization over the course of the 20th century. We identify four phases of financialization: the first, from the 1900s to 1933 (early financialization); the second, from 1933 to 1940 (transitory phase); the third, between 1945 and 1973 (definancialization); and the fourth period begins in the early 1970s and leads to the Great Recession (complex financialization). Our findings indicate that the main features of the current phase of financialization were already in place in the first period. We closely examine institutions within these distinct financial regimes and focus on the relative size of the financial sector, the respective regulation regime of each period, and the intensity of the shareholder value orientation, as well as the level of financial innovations implemented. Although financialization is a recent term, the process is far from novel. We conclude that its effects can be studied better with reference to economic history.
A marked acceleration of total factor productivity (TFP) growth in U.S. manufacturing followed World War I. This development contributed substantially to the absolute and relative rise of the domestic economy's aggregate TFP residual, which is observed when the 'growth accounts' for the first quarter of the twentieth century are compared with those for the second half of the nineteenth century. Two visions of the dynamics of productivity growth are germane to an understanding of these developments. One emphasizes the role of forces affecting broad sections of the economy, through spillovers of knowledge and the diffusion of general purpose technologies (GPT's). The second view considers that possible sources of productivity increase are multiple and idiosyncratic. Setting aside possible measurement errors, the latter approach regards sectoral and economy-wide surges of the TFP growth to be simply the result of which carried more weight than others. Although there is room for both views in an analysis of the sources of the industrial TFP acceleration during the 1920's, we find the evidence more compelling in support of the first approach. The proximate source of the TFP surge lay in the switch from declining or stable capital productivity to a rising output-capital ratio, which occurred at this time in many branches of manufacturing, and which was not accompanied by slowed growth in labor productivity. The 1920's saw critical advances in the electrification industry, the diffusion of a GTP that brought significant fixed capital-savings. But the same era also witnessed profound transformations in the American industrial labor market, followed the stoppage of mass immigration from Europe; rising real wages provided strong impetus to changes in workforce recruitment and management practices that were underway in some branches of the economy before the War. The productivity surge reflected the confluence of these two forces. This historical study has direct relevance for policies intended to increase the rate of productivity growth. In many respects, the decade of the 1920's launched the US economy on a high-growth path that lasted until the 1970's. If we hope to return to the growth performance of that era, we would be well advised to understand how it began.
A leading economist discusses the potential of happiness research (the quantification of well-being) to answer important questions that standard economics methods are unable to analyze.
Revolutionary developments in economics are rare. The conservative bias of the field and its enshrined knowledge make it difficult to introduce new ideas not in line with received theory. Happiness research, however, has the potential to change economics substantially in the future. Its findings, which are gradually being taken into account in standard economics, can be considered revolutionary in three respects: the measurement of experienced utility using psychologists' tools for measuring subjective well-being; new insights into how human beings value goods and services and social conditions that include consideration of such non-material values as autonomy and social relations; and policy consequences of these new insights that suggest different ways for government to affect individual well-being. In Happiness, emphasizing empirical evidence rather than theoretical conjectures, Bruno Frey substantiates these three revolutionary claims for happiness research. After tracing the major developments of happiness research in economics and demonstrating that we have gained important new insights into how income, unemployment, inflation, and income demonstration affect well-being, Frey examines such wide-ranging topics as democracy and federalism, self-employment and volunteer work, marriage, terrorism, and watching television from the new perspective of happiness research. Turning to policy implications, Frey describes how government can provide the conditions for people to achieve well-being, arguing that a crucial role is played by adequate political institutions and decentralized decision making. Happiness demonstrates the achievements of the economic happiness revolution and points the way to future research.
Since the late 1990s, over 75% of US industries have experienced an increase in concentration levels. We find that firms in industries with the largest increases in product market concentration show higher profit margins and more profitable mergers and acquisitions deals. At the same time, we find no evidence for a significant increase in operational efficiency. Taken together, our results suggest that market power is becoming an important source of value. These findings are robust to the inclusion of (i) private firms; (ii) factors accounting for foreign competition; and (iii) the use of alternative measures of concentration. We also show that the higher profit margins associated with an increase in concentration are reflected in higher returns to shareholders. Overall, our results suggest that the US product markets have undergone a shift that has potentially weakened competition across the majority of industries.
“Dualism” in the structure of production across sectors of the U.S. economy, employment by sector, productivity levels and growth, real wages, and intersectoral terms of trade increased markedly between1990 and 2016. The discussion focuses on 16 sectors. Seven were “stagnant”—construction, education and health, other services, entertainment, accommodation and food, business services, and transportation and warehousing. They had low productivity levels, productivity growth rates hovering around zero, and low real wages. Their share of total employment rose from 47% in 1990 to 61% in 2016. The other “dynamic” sectors had higher and positively growing productivity while the terms of trade shifted against them. This bifurcation between industries is discussed in terms of a simple model. Increasing duality and secular stagnation are distinct possibilities.
Reliance on a “representative firm” approach in studying industrial behavior during the Great Depression obscures economically interesting patterns. A newly discovered data source lets us form and study an establishment-level panel dataset on the motor vehicles industry, one of the largest in 1929. Substantial intraindustry heterogeneity led to large composition effects in employment, output, and productivity: the large number of plants that shut down were unlike the continuing ones. Oddly, output does not seem to have shifted among continuing producers to the relatively low-cost ones. Reconciling these should illuminate links between industrial organization and macroeconomics.
"To discover who rules, follow the gold." This is the argument of Golden Rule, a provocative, pungent history of modern American politics. Although the role big money plays in defining political outcomes has long been obvious to ordinary Americans, most pundits and scholars have virtually dismissed this assumption. Even in light of skyrocketing campaign costs, the belief that major financial interests primarily determine who parties nominate and where they stand on the issuesâthat, in effect, Democrats and Republicans are merely the left and right wings of the "Property Party"âhas been ignored by most political scientists. Offering evidence ranging from the nineteenth century to the 1994 mid-term elections, Golden Rule shows that voters are "right on the money." Thomas Ferguson breaks completely with traditional voter centered accounts of party politics. In its place he outlines an "investment approach," in which powerful investors, not unorganized voters, dominate campaigns and elections. Because businesses "invest" in political parties and their candidates, changes in industrial structuresâbetween large firms and sectorsâcan alter the agenda of party politics and the shape of public policy. Golden Rule presents revised versions of widely read essays in which Ferguson advanced and tested his theory, including his seminal study of the role played by capital intensive multinationals and international financiers in the New Deal. The chapter "Studies in Money Driven Politics" brings this aspect of American politics into better focus, along with other studies of Federal Reserve policy making and campaign finance in the 1936 election. Ferguson analyzes how a changing world economy and other social developments broke up the New Deal system in our own time, through careful studies of the 1988 and 1992 elections. The essay on 1992 contains an extended analysis of the emergence of the Clinton coalition and Ross Perot's dramatic independent insurgency. A postscript on the 1994 elections demonstrates the controlling impact of money on several key campaigns. This controversial work by a theorist of money and politics in the U.S. relates to issues in campaign finance reform, PACs, policymaking, public financing, and how today's elections work.
One can be independent, or one can be subject to decisions made by others. This paper argues that this difference, embodied in the institutional distinction between the decision-making procedures 'market' and 'hierarchy', affects individual wellbeing beyond outcomes. Taking self-employment as an important case of independence, it is shown that the self-employed derive higher satisfaction from work than those employed in organizations, irrespective of income gained or hours worked. This is evidence for procedural utility: people value not only outcomes, but also the processes leading to outcomes. Copyright (c) The London School of Economics and Political Science 2007.
This paper provides evidence of the necessity and success of antitrust enforcement. It begins with examples of socially beneficial antitrust challenges by the federal antitrust agencies to price-fixing and other forms of collusion; to mergers that appear likely to harm competition; and to monopolists that use anticompetitive exclusionary practices to obtain or maintain their market power. It then reviews systematic empirical evidence on the value of antitrust derived from informal experiments involving the behavior of U.S. firms during periods without effective antitrust enforcement, and the behavior of firms across different national antitrust regimes. Overall, it concludes, the benefits of antitrust enforcement to consumers and social welfare--particularly in deterring the harms from anticompetitive conduct across the economy--appear to be far larger than what the government spends on antitrust enforcement and firms spend directly or indirectly on antitrust compliance.
The Rise and Fall of the Word
- T Francis
Antitrust's Unconventional Politics
- Daniel Crane
THE SPIRIT LEVEL: WHY GREATER EQUALITY MAKES SOCIETIES STRONGER
- Richard Wilkinson
The Twilight of the Technocrats' Monopoly on Antitrust?
- Sadeep Vaheesan
see citations in Steven Salop, Invigorating Vertical Merger Enforcement
- Michael Salinger
An economic outcome is said to be pareto optimal if it is impossible to make some individuals better off without making some other individuals worse
- Andreau Mas-Colell
E]mployment of research scientists and engineers grew 72.9 percent between 1929-1933, while employment totals in other occupational categories collapsed
- Alexander Field
G�rard Dum�nil and Dominique Levy, A Stochastic Model of Technical Change, Applications to the
- Robert C Allen
Margaret O'Mara, THE CODE SILICON VALLEY AND THE REMAKING OF AMERICA, Penguin (2019) (demonstrating how important the United States military and space programs were to the success of the silicon valley and Boston area tech companies)
- Mariana Mazzucato
Council of Economic Advisers, Benefits of competition and indicators of market power; Council of Economic Advisers Issue Brief
- J Baker
Amazon's Antitrust Paradox
- Lina Kahn
Many cases of resale price maintenance do not involve pre-sale services
- Robert Steiner
Are Retailers Who Offer Discounts Really
- Robert Pitofsky
However, little empirical evidence exists to justify any of these theories, and if some consumers desire these benefits but others don't the overall impact can be ambiguous
- Roger Blair And David Kaserman
If the incomparability of utility to different individuals is strictly pressed, not only are the prescriptions of the welfare school ruled out, but all prescriptions whatever
- Nicholas Kaldor
Moreover, analysis of Robert Willig does not limit this problem to 110
- W M Gorman