My favorite books to read before—or after—you learn antitrust law

This detailed historical narrative ably recounts the zig-zags in government policy toward large firms during the New Deal and the concomitant debates among advocates of regulation, antitrust, and laissez-faire.

Modern antitrust can be understood as emerging during the 1940s to resolve the 1930s policy struggles successfully. Today’s antitrust policy debate may seem new and fresh, but it often echoes the divergent positions taken during the 1930s.  

This is the tenth in a charming series of children’s books about Freddy the Pig and the other talking animals on the Bean farm that began in the early 20th century, two decades before Orwell’s Animal Farm.

Freddy has been called a renaissance pig—a detective, poet, pilot, newspaper editor, and much more. 

In this story, the rapacious owner of the local newspaper employs various underhanded tactics to shut down the rival paper edited by Freddy. The scheme is thwarted when Freddy’s lawyer, Old Whibley the owl, convinces a judge that the would-be monopolist engaged in “kidnapping, theft, and conspiracy in restraint of trade.”

As is evident, by the 1940s, when the book was published, antitrust was recognized in popular culture as the legal tool for protecting the victims of unfair competitive tactics—which is still how we see it today. 

This is a wide-ranging, thought-provoking, accessible, informed, lively, and convincing economic history of the “long” 20th century (1870 to 2010). 

Among its many narratives, the book shows how “thirty glorious years of social democracy” ended around 1975 when the U.S. and other economies in the global north took “the neoliberal turn” in favor of relying more on the market to organize society. 

That history is essential context for understanding why the U.S. Supreme Court, beginning in the late 1970s and 1980s, relaxed the “structural era” antitrust rules in place since the 1940s, which had emphasized skepticism about growing concentration and the conduct of large firms in concentrated markets. 

The book also emphasizes the importance of technology-driven economic growth for human well-being. That perspective helps make the case today for economic policies that promote competition among firms, which fosters productivity and growth.

The antitrust rules introduced in the late 1970s and 1980s are largely still in place. 

In important ways, those rules were shaped by the economic analyses and arguments of well-known scholars associated with the University of Chicago.

Since then, microeconomics has been transformed using concepts from game theory, and economic thinking about the competitive consequences of firm practices has changed.  This economic-based guide to business strategy distills key concepts that underlie modern antitrust analysis, which is a close cousin to business strategy.

The book lays out those concepts clearly and accessibly, with instructive case studies and minimal jargon. These ideas from economic theory, combined with new empirical tools and data, are the basis for the recent economic research that finds that today’s antitrust rules are inadequate to prevent the acquisition and exercise of market power. 

Information technology is reshaping the economy and has raised novel competition concerns. 

Many of the highest-profile antitrust cases involve giant firms in the information technology sector, from IBM and Microsoft in the past to Alphabet, Amazon, Apple, and Meta today.

This business strategy book, written by two leading economists, taught a generation of business leaders how to navigate the competitive challenges that arise in information industries. It explains simply and clearly, with useful examples, concepts like network effects and lock-in that form the essential economic background for understanding both the business strategy problems that are the focus of the book and the antitrust issues that can arise in this sector.