Assessing the Neo-Brandeisian Revolution: Looking for Mr. Schumpeter?

Neo-Brandeisians want to revamp antitrust policy to deconcentrate the economy and populate markets with small firms. In their eyes, any exercise or pursuit of market power through scale is inherently suspicious and should be analyzed with the assumption that such market power generates unfair competition and is likely to become entrenched and unassailable. Disregarding the Schumpeterian school, which prioritizes innovation, Neo-Brandeisians overlook the fact that scalability is an essential means to commercialize innovation. They dismiss the idea that their assertive antitrust policies could undermine competitiveness, and they disparage the idea that endless gales of creative destruction will keep incumbents in check. To what extent do Schumpeter’s insights matter to today’s economy? How might broader understanding and acceptance of the Schumpeterian perspective alter today’s Neo-Brandeisian revolution?

Watch this expert discussion about how to integrate the Schumpeterian perspective into competition policy as an alternative to the Neo-Brandeisian movement agenda.