Thursday, May 24, 2007

No Free Competition Law

A lot of people who are in favor of the competition law fall into the trap of comparing apples and oranges without knowing it.

They think if the market weren't working (equivalent to market imperfection), the government needs to do something about it (or correcting the wrongs in the market if you like). What they forget to inform us is that they are implicitly assuming that doing something about market imperfection is costless. In fact, it does cost us, a lot!

Here is one instance where the Supreme Court in the US is trying to lower the costs of running the country's competition law.

No comments: