In mainstream antitrust law the nature of economic efficiency has not been investigated in great depth. Such an investigation has important implications for antitrust law and economics. Among these are the following: (1) Behavioral economics shows that consumer surplus measures of losses...

This paper argues that the consistent application of benefit-cost analysis (BCA) is likely to enhance the well-being of all. Thus, the justification for its use in policy making lies directly in the Pareto test. The Pareto justification stems from a decision-rule perspective across a portfolio...

The concept of market failure was originally presented by economists as a normative explanation of why the need for government expenditures might arise. Gradually, the concept has taken on the form of a full-scale diagnostic tool frequently employed by policy analysts to determine the exact...