Current & Recent Research at Penn Law
Yoo, Christopher S.
Spulber, Daniel F.
|Citation:||Antitrust, the Internet, and the Economics of Networks, in OXFORD HANDBOOK OF INTERNATIONAL ANTITRUST ECONOMICS 380 (Roger D. Blair & D. Daniel Sokol eds., Oxford University Press 2014) (with Daniel F. Spulber).|
|Subjects:|| Law and Economics
Law and Regulatory Systems
Law, Technology and Communications
|Keywords:|| Mass Media Law
Science and Technology
Law and Technology
|Network industries, including the Internet, have shown significant growth, substantial competition, and rapid innovation. This Chapter examines antitrust policy towards network industries. The discussion considers the policy implications of various concepts in the economics of networks: natural monopoly, network economic effects, vertical exclusion, and dynamic efficiency. Our analysis finds that antitrust policy makers should not presume that network industries are more subject to monopolization than other industries. We find that deregulation and the strength of competition in network industries have removed justifications for structural separation as a remedy. Also, we argue that that deregulation and competition have effectively eliminated support for application of the essential facilities doctrine. Antitrust policy in network industries should be guided by considerations of dynamic efficiency.|