Role of Economics in Competition Law
Competition Law and the Institutional Embeddedness of Economics.
By: Ray Kerkmez LLM, MDR
* Economics represents a generic and standardised linguistic approach in the global harmonisation and integration of antitrust laws.
* It is clear that social, cultural and institutional forces shape and influence not just political and legal processes but also economic processes.
* However, few scholars recognise the embeddedness of economics in key institutional decision making processes.
* As a legitimate scientific field, the primary role of economics is to apply specific methods in addressing empirical and factual issues.
* This is due perhaps to lack of systemic incentives in supporting the study of these issues and the inability of economists and policy makers to fit economics into the practice of legal scholarship.
* With respect to the global harmonisation and integration of anti-trust laws, the role of economics is limited to the evaluation pertinent economic data, the interpretation and subsequent application of relevant concepts and the generation of testable claims for future research.
* The results of pertinent economic analyses (with respect to the development of antitrust legislation) must be accompanied by relevant procedural and substantive changes in legal processes.
* The global harmonisation and integration of antitrust laws requires the systematic exportation of the US antitrust model.
* Economics should play an important role in analysing, developing and evaluating pertinent models in enhancing competition both at the domestic and international level.
* Given the extraordinary status of economics in antitrust legislation, it is only necessary to provide effective mediums for integrating economics into the practice of legal scholarship.
* Of course, social, cultural and political factors are important determinant of policy making initiatives, but these must be situated within the realm of economic decision making models.
* It is in this sense that economics must be embedded and incorporate within institutional processes.
Gerber, J. David, Distinguished Professor of Law, Chicago-Kent College of Law, Chicago, Illinois.
Gerber, J. David, Competition Law and the Institutional Embeddedness of Economics (January 2009). http://works.bepress.com/cgi/viewcontent.cgi?article=1074&context=david_gerber