By John B. Kirkwood, J. B. Kirkwood
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Additional info for Antitrust Law and Economics, Volume 21
On this issue – one way of characterizing the Bork v. Lande debate – the courts have not reached agreement. They remain divided over whether the ultimate purpose of antitrust law is to promote economic efficiency, and thereby benefit consumers in the economy as a whole, or to protect consumers in the relevant market from exploitation. At the same time, though, a resolution appears to be emerging. Recent federal decisions seem to be more interested in preventing consumer exploitation than in advancing economic efficiency.
They will gain more than any other consumers, while consumers in the relevant market will be hurt. In addition, Bork could easily have made his definition clearer: he could have referred to traditional efficiency as “total” welfare, not consumer welfare. 12. See King (1999). For a fuller discussion of the origin and reception of his article, see Lande (1999). 13. In his original article, Lande summarized his conclusions as follows: Congress was concerned principally with preventing “unfair” transfers of wealth from consumers to firms with market power .
If the seller refuses to do so, however, it is likely to lose the business and make no profit Consumers, Economics, and Antitrust 39 at all on it. 110 The amount of business at stake, and thus the volume of supracompetitive profits at risk, is likely to influence a seller’s willingness to grant a concession. Buyers can enhance their bargaining leverage, therefore, by amalgamating their orders. Scherer and Ross state (p. 528): [O]ligopolists are prone to cut prices in order to land an unusually large order, especially when they have excess capacity.