Antitrust is concerned about the structure of markets as well as with the bargaining that goes on within them. As a result, the absolute cost of redeploying resources is as important as the transaction costs of arranging for their movement . Building a new plant, refitting a facility from the production of one product to another, or moving inputs from point A to point B may all involve numerous transaction costs . But they also involve the nontransactional costs of the design, engineering, or transportation that such movement requires. What makes antitrust policy relevant is not merely transaction costs but also the costs of choices about initial resource deployments and subsequent movement . At various times in its history, antitrust policy has given greater or lesser weight to the role of transaction costs , on the one hand, rather than the absolute costs of resource movement , on the other.
Antitrust is concerned about the structure of markets as well as with the bargaining that goes on within them. As a result, the absolute cost of redeploying resources is as important as the transaction costs of arranging for their movement . Building a new plant, refitting a facility from the production of one product to another, or moving inputs from point A to point B may all involve numerous transaction costs . But they also involve the nontransactional costs of the design, engineering, or transportation that such movement requires. What makes antitrust policy relevant is not merely transaction costs but also the costs of choices about initial resource deployments and subsequent movement . At various times in its history, antitrust policy has given greater or lesser weight to the role of transaction costs , on the one hand, rather than the absolute costs of resource movement , on the other.
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