This is a survey of the economic principles that underlie antitrust law and how those principles relate to competition policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each area, we select the most relevant portions of...

This chapter discusses the principal theoretical and practical problems of the economics of cartels, collusion, and horizontal merger. Because the new theoretical approaches are not easily modified to encompass welfare considerations, except in a very partial-equilibrium setting, the positive...