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An Economic Falsehood in Opposing Monopolization Law——Decoding the Prohibition of Low-cost Competition

Xiong Yi

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Abstract

Many countries attribute the behavior of low-cost competition to monopolization,and prohibit it by law.However,if we analyze the scientificalness of legislation basis and enforcement operatability with economic theory,we can perceive clearly the futility of this legal rule.The analysis of process and result will provide some valuable reference for our opposing monopolizing legislation.

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What this paper is about

Many countries attribute the behavior of low-cost competition to monopolization,and prohibit it by law.However,if we analyze the scientificalness of legislation basis and enforcement operatability with economic theory,we can perceive clearly the futility of this legal rule.The analysis of process and result will provide some valuable reference for our opposing monopolizing legislation.

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Available abstract

Many countries attribute the behavior of low-cost competition to monopolization,and prohibit it by law.However,if we analyze the scientificalness of legislation basis and enforcement operatability with economic theory,we can perceive clearly the futility of this legal rule.The analysis of process and result will provide some valuable reference for our opposing monopolizing legislation.

Key concepts: Monopolization, Legislation, Competition (biology), Enforcement, Law and economics, Competition law, Economic analysis, Externalization

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