Mises Wire

Trust for Anti-Trust?

Trust for Anti-Trust?

I’m reviewing my notes for a lecture I’m giving in Denver in about an hour, and I came across notes about an FTC judgment against Toys-R-Us claiming that they were stifling competition by using their market power as a toy distributor. In light of the recent bankruptcy filing by Blockbuster, I started to wonder: what is the effect of a negative antitrust ruling on the probability of a future bankruptcy filing? In short, how many so-called monopolists ended up belly-up within a few years of their antitrust proceedings? And why do I keep thinking about “Tom Smith and His Incredible Bread Machine?”

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