Theory in closer contact with industrial life
- This paper investigates the views on competition theory and policy of the American institutional economists during the first half of the 20th century. These perspectives contrasted with those of contemporary neoclassical and later mainstream economic approaches. We identify three distinct dimensions to an institutionalist perspective on competition. First, institutionalist approaches focused on describing industry details, so as to bring theory into closer contact with reality. Second, institutionalists emphasized that while competition was sometimes beneficial, it could also be disruptive. Third, institutionalists had a broad view of the objectives of competition policy that extended beyond effects on consumer welfare. Consequently, institutionalists advocated for a wide range of policies to enhance competition, including industrial self-regulation, broad stakeholder representation within corporations, and direct governmental regulations. Their experimental attitude implied that policy would always be evolving, and antitrustThis paper investigates the views on competition theory and policy of the American institutional economists during the first half of the 20th century. These perspectives contrasted with those of contemporary neoclassical and later mainstream economic approaches. We identify three distinct dimensions to an institutionalist perspective on competition. First, institutionalist approaches focused on describing industry details, so as to bring theory into closer contact with reality. Second, institutionalists emphasized that while competition was sometimes beneficial, it could also be disruptive. Third, institutionalists had a broad view of the objectives of competition policy that extended beyond effects on consumer welfare. Consequently, institutionalists advocated for a wide range of policies to enhance competition, including industrial self-regulation, broad stakeholder representation within corporations, and direct governmental regulations. Their experimental attitude implied that policy would always be evolving, and antitrust enforcement might be only one stage in the development toward a regime of industrial regulation.…
Author details: | Matthew T. PanhansORCiD, Reinhard SchumacherORCiDGND |
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DOI: | https://doi.org/10.1017/S1744137421000357 |
ISSN: | 1744-1374 |
ISSN: | 1744-1382 |
Title of parent work (English): | Journal of institutional economics |
Subtitle (English): | American institutional economists on competition theory and policy |
Publisher: | Cambridge Univ. Press |
Place of publishing: | Cambridge |
Publication type: | Article |
Language: | English |
Date of first publication: | 2021/10/01 |
Publication year: | 2021 |
Release date: | 2023/06/20 |
Tag: | Competition; economic thought; economics; industrial organization; institutional; institutionalism; public policy |
Volume: | 17 |
Issue: | 5 |
Article number: | PII S1744137421000357 |
Number of pages: | 18 |
First page: | 781 |
Last Page: | 798 |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Peer review: | Referiert |