Lucid, highly readable, and full of rich social and political implications, “The Antitrust Paradox” illustrates how the purpose and integrity of law can be subverted. Winter Robert Bork, The Antitrust Paradox: A Policy at. War with Itself. Paul H. Brietzke. This Book Review is brought to you for free and open access by the. Jan 3, In his highly influential work, The Antitrust Paradox, Robert Bork asserted that the sole normative objective of antitrust should be to maximize.

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Amazon’s Antitrust Paradox

In this Part, I trace this history by sketching out how a structure-based view of competition has been replaced by price theory and exploring how this shift has played out through changes in doctrine and enforcement. See Hovenkampsupra note 57, at While economic structuralists believe that industrial anritrust predisposes firms toward certain forms of behavior that then steer market outcomes, the Chicago School presumes that market outcomes—including firm size, industry structure, and concentration levels—reflect the interplay of standalone market forces and the technical demands of production.

By contrast, the cross-subsidization model used by publishers has no analogous crossover effects. Bain, Workable Competition in Oligopoly: See Leslie, supra note 94, at Google has stated that its biggest rival in search is not Bing or Yahoo, but Amazon.

antitrsut Lastly, Amazon could recoup its losses by extracting more from publishers, who are dependent on its platform to market both e-books and print books. Cross-subsidization schemes can have widely different effects, depending on how the two submarkets….

As Amazon continues both to deepen its existing control over key infrastructure and to reach into new lines of business, its dominance demands the same scrutiny. Publishers have also merged divisions internally. Investors have granted the company much antirtust leeway to do so than other technology companies of its size often receive, because of its history of delivering outsize growth.


Within a consumer welfare framework, these harms include degradation of product quality and sapping diversity of choice. Even as Amazon has raised the parado of the Amazon Mom program, no newcomers have recently sought to challenge it in this sector, supporting the idea that intimidation may also serve as a practical barrier.

Rather, the systemic risks created by concentration among platforms are of a different kind. A third and overriding political concern is that if the free-market sector of the economy is allowed to develop under antitrust rules that are blind to all but economic concerns, the likely result will be an economy so dominated by a few corporate giants that it will be impossible for the state not to play a more intrusive role in economic affairs.

For anritrust more recent argument in favor of rebalancing antitrust away from technocracy and toward demo…. If retailers—including Amazon—implement discriminatory pricing on a wide scale, each individual would be subject to his or her own personal price trajectory, eliminating the notion of a single pricing trend. As the Introduction and Part III describe, Amazon has charted immense growth while investing aggressively—both by expanding provision of physical and online infrastructure antitrkst by pricing goods below cost.

Antitrust Paradox – Robert H. Bork – Google Books

That debate has not yet extended to Amazon, but—given the growth of Amazon Web Services—it may be appropriate. Statistics and Facts About AmazonStatistahttp: For many sellers, this is the way to go. Antitrust law and competition policy should promote not welfare but competitive markets.

Chris IsidoreTarget: As a result, the company has positioned bofk at the center of Internet commerce and serves as essential infrastructure for a host of other businesses that now depend on it.

This dual role also enables a platform to exploit information collected anritrust companies using its services to undermine them as competitors. Could this company ever make a whole lot of money selling so much for so little? The modern view of integration largely assumes away barriers to entry, an element of structure, presuming that any advantages enjoyed by the integrated firm trace back to efficiencies.


This level of concentrated control creates hazards analogous to those recognized in banking law. But recent reporting does suggest that Amazon manipulates how it presents pricing in order to favo…. On a regular basis, Amazon would report losses, and its share price would soar. Most paracox, Amazon has also expanded into trucking. Notably, this focus on wealth transfers was not solely economic. That longer timeline, meanwhile, makes available more recoupment mechanisms.

By overlooking structural factors like bargaining power, modern antitrust doctrine fails to address this type of threat to competitive markets.

In this case, Amazon raised prices by cutting back discounts and at least temporarily refusing to expand the program. The difference with Amazon is the scale and sophistication of the data it collects. Many scholars, however, have shown that Congress had several motives for the adoption of the Sherman Act, probably none of which was “consumer welfare.

Even if a firm viewed the unmet demand as an invitation to enter, several factors would prove discouraging in ways that the existing doctrine does not consider.

This vision encompassed a variety of ends.

The Antitrust Paradox – Wikipedia

Federal Trade Commission Act, ch. A locational advantage gave Utah Pie cheaper access to the Salt Lake City market, which it used to price goods below those sold by competitors. Courts generally assume that a firm will recoup by increasing prices on the same goods on which it previously antitruxt money. This failure stems both from assumptions embedded in the Chicago School framework and from the way this framework assesses competition.

Animating public utility regulations was the idea that essential network industries—such as railroads and electric power—should be made available to the public in the form of universal service provided at just and reasonable rates.