Stucke, Maurice E. --- "Are People Self-interested? The Implications of Behavioral Economics on Competition Policy" [2011] ELECD 741; in Drexl, Josef; Grimes, S. Warren; Jones, A. Clifford; Peritz, J.R. Rudolph; Swaine, T. Edward (eds), "More Common Ground for International Competition Law?" (Edward Elgar Publishing, 2011)

Book Title: More Common Ground for International Competition Law?

Editor(s): Drexl, Josef; Grimes, S. Warren; Jones, A. Clifford; Peritz, J.R. Rudolph; Swaine, T. Edward

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849803946

Section: Chapter 1

Section Title: Are People Self-interested? The Implications of Behavioral Economics on Competition Policy

Author(s): Stucke, Maurice E.

Number of pages: 18

Extract:

1. Are people self-interested?
The implications of behavioral
economics on competition policy
Maurice E. Stucke*

1 INTRODUCTION

For 30 years, the neoclassical economic theories associated with the
University of Chicago1 have shaped American competition policies. These


* The author wishes to thank Warren Grimes, Christopher Sagers, D
Daniel Sokol, Gregory M Stein, Avishalom Tor, Spencer Weber Waller, Dick
Wirtz, Michael Wise and the participants of the 4th ASCOLA conference, the
Competition Law Forum on Behavioral Economics, and the Max Planck Institute
for Research on Collective Goods for their helpful comments, and the University
of Tennessee College of Law and the W Allen Separk Faculty Endowment for the
summer research grant. This chapter is based on a longer article that was published
in (2010) 50 Santa Clara L Rev 893.
1 It is important to recognize that the beliefs of some Chicago School theo-

rists evolved over time. See RA Posner, `The Chicago School of Antitrust Analysis'
(1979) 127 U Pa L Rev 925, at 932 (noting that some ideas first advanced by one
of the School's founders Aaron Director `have been questioned, modified, and
refined, resulting in the emergence of a new animal: the "diehard Chicagoan" (such
as Bork and Bowman) who has not accepted any of the suggested refinements or
modifications in Director's original ideas'). At times, its theorists have clashed over
competition policy or in their beliefs in market forces. Nobel laureate Ronald H
Coase, who is commonly associated with the Chicago School, for example, rejected
...