People are telling lots of untruths about vertical mergers and antitrust. Fiona Scott Morton is on the case: Fiona Scott Morton: There are many false assertions lurking in the comments on the agency draft VMGs Here is one: "Despite the fact that, among law and economics scholars, it has long been an essentially settled matter that vertical integration—whether partial integration by contract or full integration by merger—is typically procompetitive (or, at the very least, competitively ambiguous, and problematic in only very limited, stylized, and theoretical circumstances)... THIS IS NOT SUPPORTED BY THEORY OR EMPIRICAL EVIDENCE. So what does the footnote say? It cites a speech asserting the same wrong thing, (See, e.g., D. Bruce Hoffman, Acting Director, Fed. Trade Comm’n, Remarks at the Credit Suisse 2018 Washington Perspectives Conference:). This person, in turn, cites a survey of papers that do NOT support the claim

#noted #2020-03-06