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Gerber, David J. --- "Competition Law and the Institutional Embeddedness of Economics" [2009] ELECD 191; 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 2

Section Title: Competition Law and the Institutional Embeddedness of Economics

Author(s): Gerber, David J.

Number of pages: 25

Extract:

2. Competition law and the institutional
embeddedness of economics
David J Gerber*

1 INTRODUCTION

Transnational debates about the role of economics in competition law have
paid relatively little systematic attention to the embeddedness of econom-
ics in institutions. They typically proceed as if embeddedness were not an
issue. The assumption appears to be that economics looks, acts and func-
tions the same wherever it is applied. This assumption is often the basis for
claims supporting increased use of economics in legal systems around the
world. The claim is that economics represents a standardized and internat-
ionally applicable language and thus that its increased use in competition
law will lead to or at least support global harmonization of antitrust law.
In particular, European discussions of a `more economic approach' to com-
petition law often refer to the use of economics in US antitrust law, and
they frequently assume that if economics works in a particular way in the
United States and has particular consequences there, it will function the
same way in Europe and have similar consequences.
Lack of attention to the embeddedness of economics in institutions can
be attributed to two sets of closely related factors. One is a lack of sufficient
incentives to explore these issues. Economists themselves generally have
little reason to study the institutional application of economics. It is not
their issue. Their role and function is to talk about the substance of eco-
nomics itself and to apply its methods.1 Legal scholars may be dissuaded
...