Kerber, Wolfgang --- "Should Competition Law Promote Efficiency? Some Reflections of an Economist on the Normative Foundations of Competition Law" [2009] ELECD 195; in Drexl, Josef; Idot, Laurence; Monéger, Joël (eds), "Economic Theory and Competition Law" (Edward Elgar Publishing, 2009)

Book Title: Economic Theory and Competition Law

Editor(s): Drexl, Josef; Idot, Laurence; Monéger, Joël

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847206312

Section: Chapter 6

Section Title: Should Competition Law Promote Efficiency? Some Reflections of an Economist on the Normative Foundations of Competition Law

Author(s): Kerber, Wolfgang

Number of pages: 28

Extract:

6. Should competition law promote
efficiency? Some reflections of an
economist on the normative
foundations of competition law
Wolfgang Kerber*

1 INTRODUCTION

After the introduction of the `more economic approach' in EU competi-
tion policy, the question of the importance of economic efficiency as a
goal of competition law has become even more relevant. To what extent
should competition law promote efficiency? What is the relation between
competition and efficiency? This problem has always been relevant for
exemptions from the prohibition of horizontal and vertical agreements
according to Article 81(3) EC (with its balancing test). It also emerged in
the discussion about efficiencies in merger control, leading to a major
change in EU merger control in 2004. Recently this problem has also
popped up with regard to the discussions about the application of the
`more economic approach' concerning Article 82 EC. Whereas econo-
mists vehemently emphasize the importance of efficiency considerations
for competition policy, legal scholars are much more uneasy about this
development.
This chapter (written by an economist) intends to contribute to a better
understanding between economists and legal scholars about the goals of
competition law. My main point is that the discussion on the normative
foundations of competition law is not well developed: The main problem
on the side of economics is that the theory of industrial organization, which


* Professor of Economics, Philipps University Marburg, Department of
Business Administration and Economics. The author would like to thank Oliver
Budzinski, Arndt Christiansen, Eleanor Fox and Daniel Zimmer for ...