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Drexl, Josef --- "Consumer welfare and consumer harm: adjusting competition law and policies to the needs of developing jurisdictions" [2015] ELECD 735; in Gal, S. Michal; Bakhoum, Mor; Drexl, Josef; Fox, M. Eleanor; Gerber, J. David (eds), "The Economic Characteristics of Developing Jurisdictions" (Edward Elgar Publishing, 2015) 265

Book Title: The Economic Characteristics of Developing Jurisdictions

Editor(s): Gal, S. Michal; Bakhoum, Mor; Drexl, Josef; Fox, M. Eleanor; Gerber, J. David

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783471492

Section: Chapter 11

Section Title: Consumer welfare and consumer harm: adjusting competition law and policies to the needs of developing jurisdictions

Author(s): Drexl, Josef

Number of pages: 31

Abstract/Description:

Competition economics and industrial organization theory in particular claim universal validity. This is based on neoclassical price theory as its theoretical foundation, which explains that economies suffer a welfare loss if they do not act against monopolistic behaviour. Thus, economic theory informs about the economic benefits of competition law and helps define its objectives. Based on a universal economic understanding, competition law aims at enhancing consumer welfare through banning anti-competitive conduct. Indeed, many competition economists and lawyers would apply such economic reasoning intuitively to all jurisdictions, inspired by a belief that the fundamental rules of how markets work are universal. Economic theory, including the goal of promoting consumer welfare, thereby emerges as the common ground of ‘global antitrust’ that creates a basis for convergence of the competition laws across different jurisdictions. This ‘world-view’ is presented in the Preface to the Global Competition Law and Economics by Elhauge and Gerardin, who describe ‘modern antitrust as global antitrust’ and identify the ‘common framework of antitrust economics’ as the theoretical foundation that links the different competition law systems of the world despite persisting differences.