I strongly adhere to the Chicago School idea that markets tend to self-correct… with a significant qualification.
Self-correction often takes a lot of time.
Competitive disruption, innovation or entry is not instant.
Hence, we cannot simply trust that the market will fix it.
Some policy implications:
- Antitrust intervention should as a rule focus on remedying short term deviations from consumer welfare, not long term ones;
- Antitrust decision-making should be agile, and not too participatory or politicized as a rule;
- Antitrust proceedings should be fast. Abridged procedural rules – including deadlines – are necessary;
- Antitrust remedies should be predominantly behavioral, because structural remedies yield long term consequences which affect the trajectory and pace of market self-correction.