Innovation Matters

A proposal for moving from price-centric to innovation-centric competition policy, reviewing theory and evidence on economic incentives for innovation. Competition policy and antitrust enforcement have traditionally focused on prices rather than innovation. Economic theory shows the ways that price...

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Main Author: Gilbert, Richard J.
Format: Online
Language:English
Published: The MIT Press 2022
Subjects:
Online Access:ONIX_20220221_9780262358637_107
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author Gilbert, Richard J.
author_browse Gilbert, Richard J.
author_facet Gilbert, Richard J.
author_sort Gilbert, Richard J.
collection Directory of Open Access Books
description A proposal for moving from price-centric to innovation-centric competition policy, reviewing theory and evidence on economic incentives for innovation. Competition policy and antitrust enforcement have traditionally focused on prices rather than innovation. Economic theory shows the ways that price competition benefits consumers; and courts, antitrust agencies, and economists have developed tools for the quantitative evaluation of price impacts. Antitrust law does not preclude interventions to encourage innovation, but over time the interpretation of the laws has raised obstacles to enforcement policies for innovation. In this book, economist Richard Gilbert proposes a shift from price-centric to innovation-centric competition policy. Antitrust enforcement should be concerned with protecting incentives for innovation and preserving opportunities for dynamic, rather than static, competition. In a high-technology economy, Gilbert argues, innovation matters. Gilbert considers both theory and available empirical evidence on the relationships among market structure, firm behavior, and the production of new products and services. He reviews the distinctive features of the high-tech economy and why current analytical tools used by antitrust enforcers aren't up to the task of assessing innovation concerns. He considers, from the perspective of innovation competition, Kenneth Arrow's “replacement effect” and the Schumpeterian theory of market power and appropriation; discusses the effect of mergers on innovation and future price competition; and reviews the empirical literature on competition, mergers, and innovation. He describes examples of merger enforcement by US and European antitrust agencies; examines cases brought against Microsoft and Google; and discusses the risks and benefits of interoperability standards. Finally, he offers recommendations for competition policy.
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spelling doab-20.500.12854ir-785872024-03-30T02:53:47Z Innovation Matters Gilbert, Richard J. competition innovation antitrust mergers acquisitions research and development R&D monopoly antitrust policy Google Microsoft European Commission Justice Department FTC Arrow Schumpeter thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCH Competition law / Antitrust law thema EDItEUR::P Mathematics and Science::PD Science: general issues::PDR Impact of science and technology on society A proposal for moving from price-centric to innovation-centric competition policy, reviewing theory and evidence on economic incentives for innovation. Competition policy and antitrust enforcement have traditionally focused on prices rather than innovation. Economic theory shows the ways that price competition benefits consumers; and courts, antitrust agencies, and economists have developed tools for the quantitative evaluation of price impacts. Antitrust law does not preclude interventions to encourage innovation, but over time the interpretation of the laws has raised obstacles to enforcement policies for innovation. In this book, economist Richard Gilbert proposes a shift from price-centric to innovation-centric competition policy. Antitrust enforcement should be concerned with protecting incentives for innovation and preserving opportunities for dynamic, rather than static, competition. In a high-technology economy, Gilbert argues, innovation matters. Gilbert considers both theory and available empirical evidence on the relationships among market structure, firm behavior, and the production of new products and services. He reviews the distinctive features of the high-tech economy and why current analytical tools used by antitrust enforcers aren't up to the task of assessing innovation concerns. He considers, from the perspective of innovation competition, Kenneth Arrow's “replacement effect” and the Schumpeterian theory of market power and appropriation; discusses the effect of mergers on innovation and future price competition; and reviews the empirical literature on competition, mergers, and innovation. He describes examples of merger enforcement by US and European antitrust agencies; examines cases brought against Microsoft and Google; and discusses the risks and benefits of interoperability standards. Finally, he offers recommendations for competition policy. 2022-02-21T15:12:40Z 2022-02-21T15:12:40Z 2020 book ONIX_20220221_9780262358637_107 9780262358637 9780262044042 https://directory.doabooks.org/handle/20.500.12854/78587 eng The MIT Press image/jpeg n/a https://doi.org/10.7551/mitpress/12686.001.0001 The MIT Press The MIT Press 10.7551/mitpress/12686.001.0001 10.7551/mitpress/12686.001.0001 ae0cf962-f685-4933-93d1-916defa5123d 9780262358637 9780262044042 The MIT Press 336 Cambridge open access
spellingShingle competition
innovation
antitrust
mergers
acquisitions
research and development
R&D
monopoly
antitrust policy
Google
Microsoft
European Commission
Justice Department
FTC
Arrow
Schumpeter
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCH Competition law / Antitrust law
thema EDItEUR::P Mathematics and Science::PD Science: general issues::PDR Impact of science and technology on society
Gilbert, Richard J.
Innovation Matters
title Innovation Matters
title_full Innovation Matters
title_fullStr Innovation Matters
title_full_unstemmed Innovation Matters
title_short Innovation Matters
title_sort innovation matters
topic competition
innovation
antitrust
mergers
acquisitions
research and development
R&D
monopoly
antitrust policy
Google
Microsoft
European Commission
Justice Department
FTC
Arrow
Schumpeter
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCH Competition law / Antitrust law
thema EDItEUR::P Mathematics and Science::PD Science: general issues::PDR Impact of science and technology on society
topic_facet competition
innovation
antitrust
mergers
acquisitions
research and development
R&D
monopoly
antitrust policy
Google
Microsoft
European Commission
Justice Department
FTC
Arrow
Schumpeter
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization
thema EDItEUR::L Law::LN Laws of specific jurisdictions and specific areas of law::LNC Company, commercial and competition law: general::LNCH Competition law / Antitrust law
thema EDItEUR::P Mathematics and Science::PD Science: general issues::PDR Impact of science and technology on society
url ONIX_20220221_9780262358637_107
work_keys_str_mv AT gilbertrichardj innovationmatters