Message from discussion Yet Another To David Friedman: Antitrust (was Re: To David Friedman: Antitrust)

From: David Friedman <D...@best.com>
Subject: Re: Yet Another To David Friedman: Antitrust (was Re: To David Friedman: Antitrust)
Date: 1998/05/08
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In article <6iv0ti$l...@nnrp1.dejanews.com>, gsoll...@virginia.edu wrote:

>The May 2 issue of The Economist has an article on antitrust (p.62-4) with a
>cartoon contrasting the "Chicago School" with the "Real World School" and
>quotes several economists who are skeptical of "Chicago Orthodoxy" on
>antitrust.  In particular, according to the article, the idea of "predatory
>pricing" has a new lease on life due to "connected markets" (Microsoft is
>mentioned), and some markets (air travel) are no longer thought to be
>"contestable" due to large sunk costs.
>
>Would you describe this as an instance of your "2% rule" (as in "you can find
>2% of economists who don't favor free trade"), or could something more
>serious be going on?

I don't know. There has been a game theory literature for some time
challenging the standard debunking of predatory pricing. I don't find the
bits I have seen very convincing, but it is not a field I work in.
-- 
David Friedman
D...@Best.com
http://www.best.com/~ddfr/
"No man is secure in his life, liberty or property 
while the legislature is in session"