Baxter, William, 3
Bekkouche, Yasmine, 192, 193
Benmelech, Efraim, 281
Berger, Allen, 216
Berger, David, 281
Bergman, Mats, 146
Bergman, Nittai, 281
Bergstresser, Daniel, 220
Berlusconi, Silvio, 199
Berry, Jeffrey M., 157
Bertrand, Marianne, 156, 162–163, 164, 199
Bezos, Jeff, 285
Big Bird, 153–154
Big Mac index, 115–116, 117
Bipartisan Campaign Reform Act (2002), 182
Birnbaum, Jeffrey, 153
Blanchard, Olivier, 31
Blanes i Vidal, Jordi, 161–162
blockchains, 219
Blonigen, Bruce A., 91
Bloom, Nicholas, 284
Boggs, Thomas Hale Jr., 162, 200
Bombardini, Matilde, 162–163, 165–166, 190, 199
Bork, Robert, 87
Bowman, Julie Benafield, 234
Bown, Chad P., 92
Brexit, 149
Briand, Aristide, 129
broadband, costs in US versus Europe, 5–6
Brown, Charles, 3
Brynjolfsson, Erik, 79, 258
Buckley, James, 182
Buckley v. Valeo (1976), 182
bundling, 19
Bureau of Labor Statistics (BLS), 41, 42
business dynamism, decline in, 81
Cagé, Julia, 192, 193
campaign finance contributions, 176–181; impact on policy choices, 9; and future of Europe’s free markets, 148–149; and endogeneity bias, 157–160; skewness of, 166–170; soliciting, 176–177; laws regulating, 181–182; measuring impact of, 182–186; Citizens United v. FEC, 186–189; and lobbying, 189; benefits for politicians and business groups, 189–192; in Europe, 192–194, 202–203; and state politics in US, 195–197; difficulties in tracking, 197–202
capital, growth rate of, 65
capital share, 108
Cardiff Reports, 136
Caree, Martin, 147
carried interest, 221
Carril, Rodrigo, 288
cartel enforcement, 146–147
Case, Anne, 223, 229
cell phones. See mobile telecommunications
Center for Responsible Politics, 184
Century Aluminum, 160
Chalmers, John M. R., 220
Chamberlin, Edward, 87
Chicago School of antitrust, 87
China shock, 58–60, 291
Churchill, Winston, 129–130, 207
Citigroup, 249
Citizens United v. FEC (2010), 186–189
Civil Aeronautics Board, 2
Clayton Act (1914), 86–87, 131
Clinton, Hillary, 180, 186
club economy, 283–284
Code of Federal Regulations, 95
Coll, Steven, 4
college premium, 16
competition: and airline industry, 2–4; and telecommunications industry, 3; decline in, 9–10, 291–294; growth and, 18–20; inequality and, 20–22; domestic, 21, 24; foreign, 21–22, 24, 92–93; and limited resources, 22–23; and economic freedom, 23; lobbying against, 23–24; assessing, 25; and deregulation of airlines and telecommunications, 30–31; and persistence of market shares over time, 51–53; among defense contractors, 288; impact of, 288–289, 294; purpose of, 294. See also antitrust; monopoly power
competitive quantity, 27–29
Compustat, 46–47
computerized information, 74
concentration: as indicator of competition, 25; types of, 25; and market power versus demand elasticity, 26; and market power and welfare, 27–30; Walmart and efficient, 31–35; measuring, using HHI, 35–39, 45, 51; and relevant market, 38; and Amazon, 39–44; basic measures of, 45; rise in, 45–48; causes and consequences of rise in, 48; hypotheses for interpreting data concerning, 48–51, 62, 97; and investment gap, 69–72; and productivity growth, 76–79; and entry and exit of firms, 80–83; and mergers and acquisitions, 84–88; from top down and bottom up, 96; in Europe, 103–106; correlation between markups and, 121–122; and deregulation of US airlines, 137; in health care, 231–232; and internet giants, 242, 265–268; monopsony and, 280–282; impact of excessive, 288
Congress of Industrial Organizations (CIO), 182
consumption of fixed capital (CFK), 64
contestability of markets, 90
corporate campaign contributions, 181
corporate income taxes, 262–264
Corrado, Carol, 73–74
Council of Economic Advisers, 46
Cournot, Antoine Augustin, 86–87
Covarrubias, Matias, 46–47, 51
Crawford, Gregory S., 19
Crawford, Susan, 6
Criscuolo, Chiara, 256
Crouzet, Nicolas, 51
CumEx network, 215
dark money, 198–199
Darrolles, Serge, 218
data protection, 271–273, 275–276, 277–278, 296
Davis, Steven, 95
Deaton, Angus, 223, 229
Decker, Ryan, 81
Decreasing Domestic Competition hypothesis, 48, 50, 53, 61, 62, 71, 97, 100
defense contractors, 288
de Figueiredo, John M., 155, 164, 189, 202
de Figueiredo, Rui J. P. Jr., 170
de Gaulle, Charles, 131
de Grey, Aubrey, 223
Della Vigna, Stefano, 199
Dellis, Konstantinos, 170
demand, and endogeneity bias, 158
demand curve, 114
demand elasticity, market power versus, 26
Demsetz, Rebecca S., 216
Department of Justice (DoJ), 86, 87–88, 92, 174, 259–260
depreciation, 64
De Young, Robert, 216
Dieselgate, 295
digital economy, measurement of, 78–79. See also internet giants
direct network externalities, 265, 267
Directorate-General for Competition (DG Comp), 133, 142, 145–146, 194
distribution costs, 111–112
Djankov, Simeon, 127, 262
dollars, US, 152
Dorn, David, 48, 50
Doyle, Arthur Conan, ix
Draca, Mirko, 161–162
Dreger, J., 168
Dube, Arindrajit, 281–282
Duggan, Mark, 288
Durante, Ruben, 199
EasyJet, 139
Eberly, Janice, 51
e-commerce spending, 40–42
economic policy, gap between economic research and, 290
economic research, gap between economic policy and, 290
economics: debates in, 9, 13; defined, 9
Economides, Nicholas, 2
economies of scale, 265, 266, 267–268
Ederer, Florian, 82
education: and US per-capita economic growth rate, 15; and income inequality, 16
Edwards, Geoff, 170
efficiency, versus market power in merger regulation, 88–90
Egan, Mark, 220
employment: and US per-capita economic growth rate, 14–15; and labor market competition, 23
endogeneity, 157–160, 180, 193
entrepreneurs, age of successful, 82
entry of new firms, 80–83, 93–96, 125–127, 216, 217–218. See also free entry
equilibrium, macroeconomic, 292
European Central Bank, 142
Europe and European Union, 97–98; growth of, 99–103; profits and concentration in, 103–106; as contrast to US, 109–110; price increases in, 118–122; free markets in, 124–128; history of, 128–131; fight against market dominance in, 131–134; differences between antitrust frameworks in US and, 133, 134; similarities between antitrust frameworks in United States and, 133; state aid rules in, 134–135; deregulation in, 135–141; theory of free markets in, 141–147; future of free markets in, 147–149; UK’s exit from, 149; comparison of political economies of
US and, 151–152, 164–166; lobbying in US versus, 168–170; distribution of large lobbying firms in US and, 169–170; campaign finance contributions in, 192–194, 202–203; open banking in, 221–222; challenges facing, 289. See also price comparisons
Evanoff, Douglas, 216
Evans, William N., 236
exchange rates. See foreign exchange market rates (FOREX)
exchange-traded funds (ETFs), 222
exit of existing firms, 80–83. See also merger reviews; mergers and acquisitions
ExxonMobil, 249
Faccio, Maria, 6
Facebook: business model of, 243, 244, 277; MV / Emp ratio of, 256; lobbying by, 260, 261; as direct network externality, 265; and privacy and data protection issues, 271, 275–276, 278; acquisition of WhatsApp, 274. See also internet giants
Federal Communications Commission, 200
Federal Election Campaign Act (FECA, 1971), 182
Federal Election Commission (FEC), 182
federal minimum wage, impact on retail prices, 33–34
federal regulations, impact on industry dynamics, 93–96
Federal Trade Commission (FTC), 86, 87, 91, 194
Feenstra, Robert, 50, 59
Feinberg, Robert, 195
Ferrari, 113
finance and financial intermediation, 207–208; function of, 208–210; cost of, 210–214; income of, 211–212; wages and regulation in, 213–214; growth of, 214–215; behavioral differences in, 214–216; financial technology and cost of, 217–218; regulation of, 218–220; lobbying in, 220–222; efficiency of, 290
financial technology (fintech), 217–218, 219–220
FiOS, 6
First Industrial Revolution, 13
Fisher, Edwin R., ix
Fisher, Irving, 45, 202
Fisman, Raymond, 199
fixed net asset values (NAVs), 218–219
Fons-Rosen, Christian, 161–162
footprints, of internet giants, 252–254, 276–277
forced inclusion, in health care, 232
Ford, Henry, 181
foreign competition, 21–22, 24, 92–93
foreign exchange market rates (FOREX), 114–115, 117
Foroohar, Rana, 267
Fouirnaies, Alexander, 191
France Telecom, 140
Freedom Path, 198
free entry, 93–96, 269–271, 294–295
free markets: in United States, 124; in Europe, 124–128; and history of European Union, 128–131; theory of Europe’s, 141–147; future of Europe’s, 147–149; and importance of adaptation, 287; fragility of, 287–288, 289
Free Mobile, 30–31, 140
free-riding, 23–24
free trade, 24
Frydman, Carola, 159
fundamental law of investment, 68
Furman, Jason, 46, 48, 278
GAFAMs. See internet giants
Gal, Peter, 256
gambling, 174
Gates, Bill, x
Gates, Robert, 288
General Data Protection Regulation (GDPR), 221–222, 272–273
General Motors, 245, 256
Gerber, D. J., 133
Giavazzi, Francesco, 125
Gingrich, Newt, 153–154
GitHub, 268
Glencore Plc, 160–161
global frontier firms, 256
Globalization hypothesis, 49, 50, 53, 56–58, 59, 97
Goldman, Julianna, 235
Goldschlag, N., 95
Google: regulation of, 194, 259; business model of, 243, 277; lobbying by, 261; and privacy and data protection issues, 271, 275. See also internet giants
Gordon, Robert, ix, 15, 258
Government Accountability Office (GAO) study, 35–37
Greenwood, J., 168
Greenwood, Robin, 214–215
gross domestic product (GDP): measuring, 13–14; growth rate of US, 14–16; competition’s impact on, 20; growth rate of European, 100–102
Grossman, Gene M., 160
growth, 13–16; inequality and, 16–18; competition and, 18–20; of Europe, 99–103; internet giants and, 256–258, 277
Grullon, Gustavo, 47, 54–56
gun control, 237
Günster, Andrea, 147
Gutiérrez, Germán, 46–47, 51, 52
Guvenen, Fatih, 284
Guzman, Jorge, 82
Hagan, Kay, 178
haircuts, price of, 112–113
Hall, Andrew B., 191
Haltiwanger, John, 73–74, 81
Hamm, Keith E., 195
hard money, in campaign finance contributions, 183
Hart-Scott-Rodino Antitrust Improvements Act (1976), 87
Harvard School of antitrust, 87
Hatch, Orrin, 198
health care, 223–225; costs in US, 225–227; percent of US GDP spent on, 227; administrative costs in, 228–229; price and consumption of, 228–229; productivity of US, 229–231; concentration in, 231–232; restricted contracts in, 232–233; regulatory capture in, 233–234; lobbying in, 234, 235; and opioid epidemic, 234–236; debates concerning, 236–239
Healthcare Access and Quality Index (HAQ), 230–231
hedonic regressions, 42
Helpman, Elhanan, 160
Herfindahl-Hirschman Index (HHI), 35–39, 45, 51, 58, 59, 71, 280
Herkenhoff, Kyle F., 281
heroin, 235–236
Highway 31, 198–199
Hilt, Eric, 159
Hirshleifer, Jack, 216
Hogan, Robert E., 195
Hojnacki, Marie, 157
Holburn, Guy, 170
Hortaçsu, Ali, 34
Hosken, Daniel, 91
housing, government involvement in, 237–238
Huckshorn, Robert J., 195
Hulten, Charles, 73–74
IBM, 249, 251, 252
incentives, 17–18
income comparisons, 114–122
index funds, 222
indirect network externalities, 265–267
industrial organization, 86–87, 91
Industrial Revolution, 13
inequality, ix; in economic debates, 13; growth and, 16–18; competition and, 20–22; and rise of club economy, 283–284
infant mortality, 224–225
inflation, 41
information technologies, 214, 217–218
initial public offerings (IPOs), 82
innovation, ix–x; and US per-capita economic growth rate, 15–16; competition’s impact on, 19–20
Intangible Assets hypothesis, 49, 51, 53, 75, 97
intangible investment, 72–75
intellectual property products (IPP) stock, 74–75
International Comparisons Program (ICP), 117
international trade, 24
internet giants, 240–242, 259–260; business models of, 242–244, 277; compared to giants of previous decades, 245–249; profit margins of, 249–252; market value of, 252; footprints of, 252–254, 276–277; MV / Emp ratios of, 254–256; and US economic growth, 256–258, 277; lobbying by, 260–262; taxes paid by, 262–264; concentration and network effects of, 265–268; and importance of free entry, 268–271; and privacy and data protection issues, 271–273, 277–278; antitrust enforcement for, 273–276; catch-22s with, 276–278. See also Amazon; Apple; Facebook; Google; Microsoft
internet service: US price indexes for, 1–2; costs in US versus Europe, 5–6; and competition’s impact on service quality, 19; deregulation of, 140
investment, 62; as low relative to profits, 63–65; purpose and goals of, 65–69; assessing value of, 67; fundamental law of, 68; intangible, 72–75; tangible, 73; weak, 79
investment gap, 69–72, 75
iPhones, 242–243
Issue One, 198
Italy, campaign finance contributions in, 199
Jacobs, Jeff, 281–282
Janofsky, Adam, 277
Jarmin, Ron, 81
Jayachandran, Seema, 191
Jeffords, James, 191–192
Jobs, Steve
, 294
Jolly, David, 176
Jones, Chad, 42, 78
Jones, Doug, 198
Jovanovic, Boyan, x
Kalanick, Travis, 267
Kang, Karam, 157
Kapner, Suzanne, 34
Katz, Lawrence, 48, 50
Kendall, Frank, 288
Keynes, John Maynard, viii
Keynes, Soumaya, 92
Khan, Lina M., 43
“killer acquisitions,” 82
Kim, Hyunseob, 281
Kimball, David C., 157
Klein, Joel, 45
Kleiner, Morris M., 283
Knight, Brian, 199
Kroszner, Randall S., 191
Krueger, Alan B., 282, 283
Krugman, Paul, 290–291
Kwoka, John, 87, 91
labor market competition, 23
labor productivity, 120–121
labor share(s): evolution of, 106–109; for market economy in US and euro area, 109
labor turnover, xi–xii
La Ferrara, Eliana, 199
Lampedusa, Giuseppe Tomasi di, 287
La Pira, Timothy M., 163
La Porta, Rafael, 127
Larkin, Yelena, 47, 54–56
law of one price (LOOP), 111–112
leadership PACs, 184
League of Nations, 129
Leech, Beth L., 157, 163
Leucht, B., 133
licensing, occupational, 282–283
Lieber, Ethan, 236
life expectancy, 224, 229
Liljenquist, Dan, 198
Lisbon Strategy, 136–137
lobbying, 153–155; impact of, 9, 174–175; against competition, 23–24; and future of Europe’s free markets, 148–149; as democratic right, 155; challenges of measuring impact of, 156–157; and endogeneity bias, 157–160; benign view versus negative view of, 160; inefficiencies created by, 160–161; connections as key to success in, 161–163; fiscal targets of, 163; empirical regularities about, 164–166; in Europe versus US, 164–166; skewness of, 166–170; effectiveness of, 170–174; intensity, 171; and campaign finance contributions, 189; in finance, 220–222; in health care, 234, 235; by internet giants, 260–262
LOOP (law of one price), 111–112
Lopez-de-Silanes, Florencio, 127
loss leader pricing, 43
Lower Search Costs hypothesis, 49–50, 52
Lucca, David, 200
luxury goods, 113
Lyon, Spencer G., 22
Ma, Song, 82
MacMillan, Douglas, 271
macroeconomic equilibrium, 292
Mahoney, Christine, 173
manufacturing, rise in concentration in, 46
marginal cost, 118
Marinescu, Ioana, 280
Marino, Tom, 235