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SILICON VALLEY ANTITRUST V.5
BOALT HALL SCHOOL OF LAW (2015)
Hanno Kaiser

FROM ZERO SUM TO GROWING THE PIE
(1) Old world
    - Expectation: almost universal poverty
    - Focus: distribution (distributive justice)
(2) New world
    - Expectation: "universal opulence" (a decent standard of living for
      everyone)
    - Focus: production (or GDP growth)

PREREQUISITES FOR GDP GROWTH
- Property
- Contracts
- Competition (= our focus)

SOCIETAL AND INDIVIDUAL GOALS
(1) Societal goal: increase output
(2) Individual goal: increase profit

STRATEGIES TO INCREASE PROFITS
(1) Get rich by making others better off
    - increases output ("growing the pie")
    - increases profit ("reward for growing the pie")
    - Harmony between individual and societal goals
	
(2) Get rich by making others worse off
    - decreases output ("shrinking the pie")
    - increases profit ("take a bigger slice")
    - Mismatch between individual and societal goals

- The antitrust laws discourage (2) but do not require (1) 

ANTITRUST: "REGULATED COMPETITION"
┌────────────────┬────────────────┬────────────────┐
│   Not enough   │ Competition on │    "Unfair"    │
│  competition   │   the merits   │  competition   │
├────────────────┼────────────────┼────────────────┤
│   Collusion    │                │   Exclusion    │
├────────────────┤                ├────────────────┤
│                │                │Harms rivals to │
│                │                │  the point of  │
│                │                │  damaging the  │
│ Directly harms │                │  competitive   │
│   consumers    │                │    process,    │
│                │                │  resulting in  │
│                │                │    harm to     │
│                │                │   consumers    │
├────────────────┤                ├────────────────┤
│    Strongly    │                │                │
│  disfavored,   │                │   Disfavored   │
│criminal in some│                │                │
│     cases      │                │                │
├────────────────┤                ├────────────────┤
│                │                │                │
│§1 (ROR, per se)│                │  §2, §1 (ROR)  │
│       §7       │                │       §7       │
│                │                │                │
└────────────────┘                └────────────────┘

ECONOMIC GOALS
- Productive efficiency (make more with less)
- Allocative efficiency (ensure that goods travel to those who value them most)
- Dynamic efficiency (create incentives to invest in innovation)

NON-ECONOMIC GOALS
- Protect the political process from dependency on concentrated economic power
  ("too big to fail")?
- Fairness: Reduce systemic bargaining inequality?