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Should Antitrust Survive Behavioral Economics?

BY | January 9, 2019

By Avishalom Tor –  The accepted economic justification for antitrust law rests on the neoclassical microeconomic model that shows that perfect competition maximizes efficiency and welfare. This model assumes that…

By Avishalom Tor – 

The accepted economic justification for antitrust law rests on the neoclassical microeconomic model that shows that perfect competition maximizes efficiency and welfare. This model assumes that consumer demand reveals rational consumer beliefs and preferences. Yet an otherwise competitive market that caters to “erroneous” demand based on consumers’ mistaken beliefs or constructed, ad-hoc preferences, such as those revealed by behavioral research, will fail to max

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