THE MYTHS OF ANTITRUST: Economic Theory and Legal Cases

Economics professor Armentano (University of Hartford, Conn.) contends that antitrust laws, long presumed necessary to protect the American business machine from monopolistic tendencies, represent only unwarranted intrusion by government in the free market system which has impeded rather than stimulated market competition. In short, ""antitrust theory and policy is a complete hoax."" This analysis is pursued through highly partisan and selective commentaries on classic 19th and 20th century antitrust and merger cases -- Standard Oil of New Jersey, the American Tobacco Company, United States Steel, Brown-Kennedy Shoe, etc. Most serious students of economics will pay Dr. Armentano scant heed. Besides leading from a purist laissez-faire position (which is about as relevant today as cottage industry), he offers no convincing arguments or data to support the contention that antitrust legislation has been deleterious to competition (though the syllogisms are heroic). In his preface, Armentano says the book advances an ""extreme"" position. Extremely extreme.