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Understanding Antitrust and Fair Competition
Antitrust and competition policy are all about setting fair rules in the market. It distinguishes between fair and unfair methods of competition. Unlawful means of competing, like burning down competitor storefronts or engaging in predatory practices, are not allowed. However, investing in facilities, workers, and operational efficiencies are lawful and fair game. We are now revisiting some assumptions made in the late 70s and 80s about monopoly power being fleeting. If a monopoly raises prices, the assumption was that new competitors would come in and discipline it.