By John B. Kirkwood, J. B. Kirkwood
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Additional info for Antitrust Law and Economics, Volume 21
It seems reasonably clear, therefore, that there is now Consumers, Economics, and Antitrust 33 broad agreement among the federal courts that the ultimate goal of antitrust law is consumer welfare. THE DEFINITION OF CONSUMER WELFARE Discerning what courts mean by consumer welfare is a more difficult task. 84 Nor have courts approached the question by deciding which interpretation of congressional intent – Lande’s or Bork’s – is correct. 85 In addition, judicial references to consumer harm are frequently ambiguous because many anticompetitive effects are objectionable under either Lande’s or Bork’s interpretation.
V. S. 36, 58–59 (1977). 7. Reiter v. S. 330, 343 (1979). 8. Posner published Antitrust Law in 1976, Bork published The Antitrust Paradox in 1978, and the first three volumes of the Areeda treatise (co-authored by Donald Turner) appeared in 1978. 9. In Chapter 5 of his book, entitled “The Consumer Welfare Model,” Bork makes clear that he measures consumer welfare the way economists have traditionally measured economic efficiency. To illustrate “the factors that are included in antitrust’s consumer welfare calculus” (p.
In addition, the Court may not have understood that by “consumer welfare,” Bork did not mean the welfare of those who consume the defendants’ products. He meant economic efficiency, which can rise even when those consumers are hurt. 96 Moreover, when the Supreme Court used “consumer welfare” almost a decade and a half later in Brooke Group, it did not equate the term with economic efficiency. To the contrary, the Court indicated that the most important determinant of consumer welfare is whether consumers in the relevant market are better off.
Antitrust Law and Economics, Volume 21 by John B. Kirkwood, J. B. Kirkwood