Abstract: Anti-trust economics has not sufficiently recognized the nature of competition and innovation in high-technology industries, the evolution of those industries and the implications for public policy. This chapter presents some conceptual frameworks and methods for understanding, in particular, issues of monopoly and monopolization. Understanding issues such as the nature of technological change, competition, barriers to entry, and market power are important for anti-trust policy. Without understanding the limitations of the existing analytical tools for analysing the economics of innovation, antitrust agencies may harm competition in high-tech industries.

Keywords: anti-trust, competition, entry barriers, high technology, innovation, market power, monopoly, public policy, technological change,