Schumpeterian Antitrust Under Rise

The Schumpeterian competition theory suggests that innovation drives competition. This particular theory is gaining traction in antitrust debates, as the model emphasizes workable competition, promoting innovation and dynamic competition. Furthermore, it suggests that antitrust agencies should reform their laws to accommodate changing economic landscapes, incorporating Schumpeterian competition and recognizing the nuanced relationship between market power, innovation, and competition. Critics of this school of thought argue that traditional models of static price competition do not effectively address the complexities of innovation in today's markets. The chapter provides a comprehensive overview of the Schumpeterian competition theory, and expands upon The Antitrust Modernization Committee’s views, which recognize the importance of innovation in rethinking antitrust enforcement, but suggest adjustments to align antitrust policy with dynamic efficiency theories and prioritize Schumpeterian competition in competitive assessments.