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Current & Recent Research at Penn Law

File: [View Document]
Author: Yoo, Christopher S.
Spulber, Daniel F.
Citation: Antitrust, the Internet, and the Economics of Networks, in OXFORD HANDBOOK OF INTERNATIONAL ANTITRUST ECONOMICS (Roger D. Blair & D. Daniel Sokol eds., Oxford University Press forthcoming 2014) (with Daniel F. Spulber)
Date Published: Forthcoming
Date Posted: 08/27/2011
Subjects: Law and Economics
Law and Regulatory Systems
Law, Technology and Communications
Keywords: Mass Media Law
Regulated Industries
Science and Technology
Antitrust
Communications Law
Computer Law
Electronic Commerce
Government Regulation
Information Law
Law and Technology
Trade Regulation
Abstract:
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.