410 The antitrust bulletin
likely future directions of that policy. This article reviews the
economists and economic analysis in Department
Justice and Federal Trade Commission merger investigations,
discusses the role and style
economic analysis in current
decisions, and projects current trends into the future. The article
points out that, because
the efficiency defense in merger
investigations and for other reasons, the antitrust enforcement
agencies are already engaged in making industrial policy. This
development is the natural outcome
trend in the intellectual basis for antitrust enforcement policy.
Moreover, it is argued that, because the skills presently employed
to make antitrust enforcement decisions are
applicability, and because
the underlying evolution
dence in the reliability
microeconomic analysis in policy
making, it would be logical to expect a movement toward an
antitrust, trade, tax, and other policies affecting
U.S. industrial structure.
A. The reform movement
There has been a 25-year trend toward increased use
microeconomic analysis in government policy making. Leaving
aside a brief period
interest in microeconomics by analysts
during World War
the governmental fascination with this
discipline dates from the Pentagon "whiz kids"
McNamara. The whiz kids were interested primarily in improving
an intellectual revolution. Just as President Nixon announced that "We
are all Keynesians now," so is it true that we are all, to some extent,
Chicagoans. As a result, the reader would not go far wrong in substitut-
ing the term "economic analysis" for "Chicago school" in characteriz-
ing current enforcement
2The wartime analysts were academic economists and mathemati-
cians who were interested in what is today called operations research.
See Operations Research, 13
ENCYCLOPAEDIA BRITANNICA 594
(1982), for a brief history.