Antitrust misunderstands innovation by focusing almost entirely on incentives to innovate to the neglect of questions regarding the ability to innovate through sharing knowledge and combining capabilities. Bringing these concerns into antitrust cases and competition policymaking would benefit innovators, consumers, and workers and lead to stronger innovation and economic growth, argues Ketan Ahuja in a new paper published by the Roosevelt Institute. Moderna and Pfizer/BioNTech’s mRNA Covid-19 vaccines represent...

COMMENTARY

Corporations Are Not “We the People”

The Citizens United ruling contradicts the Founders, decades of Supreme Court precedent...

RESEARCH

PODCAST

A New Capitalisn’t Episode

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LATEST

Capitalism Does Not Require a Tradeoff Between Planet and Profit

Critics of capitalism claim that the economic system incorrigibly encourages the exploitation of the planet and is thus incompatible with efforts to...

Too Many Economists Are Using a Flawed Theory To Defend Dominant Platforms’ Self-Preferencing Practices

Congress is currently considering two major bills that would regulate “self-preferencing” and related conduct by dominant digital platforms. Criticism of these bills...

Unfair Methods of Competition

The FTC’s new policy on unfair methods of competition is an assertion of the original purpose of the agency, allowing it to...

Event Notes: Whose Business is Health?

On Oct.14, the Hopkins Business of Health Initiative hosted a panel discussing if and how companies should consider the health implications of...

Why Disruptive Innovation Has Declined Since 2000

Traditional accounts of the growing power of large firms implicate antitrust or political corruption. But in a recent book, economist James Bessen...

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READING LISTS

Americans spend significantly more on health care than any other country. Why? Answers to this question range from hospital monopolies to perverse incentives to opaque pricing to medical licensing to pharmaceutical firms abusing IP practices to “creeping consolidation.” Why is the US health care system so broken? And what can antirust do about it? Catch-up on our coverage of antitrust and the US health care system.

Antitrust Enforcement Is Not Enough to Address Anticompetitive Conduct in Pharmaceutical Markets. Market-Oriented Legal Reform is Needed.

Federal antitrust enforcement has been robust and effective in promoting prescription drug market competition and thereby enhancing consumer welfare. Antitrust enforcement in...

Competition Problems in Prescription Drug Market

Although not the sole cause of high prescription drug costs, abusive practices that distort competition contribute to the problem. Too many companies...

Why the FTC Should Consider Size in Drug Mergers

Large pharmaceutical firms retain their dominance through size-related advantages in three areas: contracting, marketing and selling, and financing. When reviewing pharmaceutical mergers,...

The Covid-19 Pandemic Should Not Delay Actions to Prevent Anticompetitive Consolidation in US Health Care Markets

Harvard Business School professor Leemore Dafny lays out potential reforms to assist agencies in halting anticompetitive acquisitions and practices, and to preserve...

George J. Stigler, one of the most influential economists of the 20th century, won the Nobel Prize in Economic Sciences in 1982 “for his seminal studies of industrial structures, functioning of markets, and causes and effects of public regulation.” His research upended the idea that government regulation was effective at correcting private-market failures. Stigler introduced the idea of regulatory capture, in which regulators could be dominated by special interests. These regulators would work for the benefit of large, monied organizations rather than the public good. Catch up on ProMarket's coverage of his legacy.

The Mechanisms of Regulatory Capture

To mark the 50-year anniversary of George Stigler’s seminal piece, “The Theory of Economic Regulation” we are publishing a new eBook examining...

The Metaphysics of Regulatory Capture

Stiglerian capture and corrosive cultural capture, its left-leaning parallel, are ostensibly symbionts, two attempts at identifying impediments to keeping markets competitive by...

Assessing George Stigler’s Economic Theory of Regulation

Despite its flaws and limitations, Stigler’s seminal article on the theory of economic regulation remains an important piece of scholarship worthy of...

The Many Faces of Stigler’s Theory of Economic Regulation: Interest Group Politics Still Thrives—But Industry Often Comes Second

Stigler treats industry groups as the heavyweights in regulatory contests. But surprisingly often groups of farmers and workers knock them for a...

Event Notes: The Consumer Welfare Standard Is Dead, Long Live the Standard

It seems that the only thing academics and policymakers can agree about regarding the Consumer Welfare Standard is that it needs reforming. On April 22, Alden Abbott, Doha Mekki, Fiona Scott Morton, and Zephyr Teachout debated the meaning and future of the Consumer Welfare Standard in a panel moderated by Stigler Center’s Luigi Zingales. What if you were the antitrust queen or king for a day? What might your...

Event Notes: How Will China Move on from the Covid-19 Pandemic?

Countries around the world have overseen wide-ranging public health responses to the Covid-19 pandemic. On June 10, the Stigler Center hosted a panel of experts to discuss China’s zero-Covid response to the pandemic and how it might...

Does Market Power Lead to Political Power?

A Stigler Center webinar explores what would be the foundations of a political and economic system that might be more resilient to pressure from powerful interests. Why has traditional...

How Wall Street Is Devastating Our National Security

Even the Pentagon now realizes that Wall Street’s insatiable appetite for easy profits and love of monopoly has become a clear and...

COLUMNS

The Complicated Legacy of the “Chicago Boys” in Chile

How did a group of Chicago-trained economists manage to turn Chile into the cradle of neoliberalism? As the country aims to move...

GameStop, the Cantillon Effect, and America’s Corrupt Financial Plumbing

The GameStop frenzy, far from a morality tale of the people showing up Wall Street elites, should show that something is seriously...

How Should We Finance Higher Education If Not Through Student Debt? A New Capitalisn’t Episode

In a new episode of Capitalisn’t, Luigi Zingales and Bethany McLean take a look at the student debt crisis: How did we...

Bethany McLean’s Weekend Reading List: Nursing Homes, the World’s Largest Pension Fund, and Our Make-Believe Economy

Corruption, lobbying, corporate malfeasance, and frauds: a weekly unconventional selection of must-read articles by investigative journalist Bethany McLean.