Research by Associate Professor Volkova and her colleagues provides insight into the real effects of anti-competitive laws which has been made available to researchers around the world.
The problem
Laws against anti-competitive behaviour are designed to ensure that businesses genuinely compete for a buyer’s dollar. This competition increases choice for consumers, improves the quality of goods, and lifts economic activity. But does enforcing these laws make a difference to economic outcomes?
The research
Associate Professor Volkova and colleagues analysed the antitrust enforcement actions undertaken between 1971 and 2018 by the Department of Justice in the United States against businesses that were alleged to have engaged in anti-competitive conduct. They found clear results that enforcement permanently increased employment and business formation and led to higher average wages. Analysis also strongly suggested that more goods and services were produced at the same time as their prices went down. Overall, the US government’s antitrust enforcement led to persistently higher levels of economic activity in the industry that Associate Professor Volkova and her team studied.
The impact
This research provides insight into the real effects of anti-competitive laws. The results have been presented to policymakers in government organisations in Australia and the United States, and fellow researchers in Australia, the United States, and the United Kingdom. To encourage future research on antitrust enforcement, the team has made their hand-collected data available to other researchers.
Department: Finance
Area: Policy, politics and law; Scholarly and creative
Researchers
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Sustainable Development Goals
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