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OURNAL
VOLUME 65ISSUE 2 APRIL 2013
- 157 -
Uncreative Destruction: The
Misguided War on Vertical Integration
in the
Information Economy
Brent Skorup
&
Adam Thierer
*
T
ABLE OF
C
ONTENTS
I.
!
I
NTRODUCTION
................................................................................ 159
!
II.
!
T
HE
S
EPARATIONS
P
RINCIPLE
......................................................... 160
!
A. The Proposal ............................................................................
160
B. A New Spin on an Old Debate ..................................................
161
III. C
OMPETITION AND
V
ERTICAL
I
NTEGRATION
................................. 165
A. Benefits of Complements and Tying .........................................
167
!
B.
!
Efficiency Benefits ....................................................................
170
!
C.
!
Competition in the Information Economy: Case Studies .........
174
!
1. AOL-Time Warner ............................................................. 1742.
!
News Corp.-DirecTV ......................................................... 176
!
3.
!
Smartphone Sector ............................................................. 176
!
D.
!
Dynamic, Schumpeterian Change vs. Static Equilibrium Analysis ....................................................................................
179
!
E.
!
Openness Concerns ..................................................................
183
!
IV.
!
R
EAL
-W
ORLD
A
PPLICATION OF THE
S
EPARATIONS
P
RINCIPLE
..... 186
!
* Brent Skorup is research director for the Information Economy Project at theGeorge Mason University School of Law. Adam Thierer is a senior research fellowat the Mercatus Center at George Mason University. The authors wish to thank thefollowing individuals for helpful comments on various drafts of the paper: JerryBrito, Geoff Manne, Richard Williams, Ted Bolema, and two anonymousreviewers.
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Uncreative Destruction: The War on Vertical Integration in the Information Economy [Skorup & Thierer]
Are information sectors sufficiently different from other sectors of the economy such that more stringent antitrust standards should be applied to them preemptively? Columbia Law School professor Tim Wu responds in the affirmative in his book…
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