The American Antitrust Institute, a Washington, D.C. think tank, recently completed a study that concludes that competition law and policy plays little if any role in business ethics courses taught in U.S. business schools. To fill this intellectual void, this article makes a case for the development of a business ethics sub-field of antitrust ethics that is synonymous with the ethics of competitive strategy. After reviewing Paine''s Five Principles of Positive Competition and Boatright''s and Hendry''s views on the Moral Manager (...) Model and Moral Market Model, the need for ethical decision-making in a dynamic, innovative environment is explained through a Federal Trade Commission antitrust case involving the Dell Computer Corporation. The author argues that the contributions of Paine, Boatright, and Hendry provide an initial foundation for further research concerning the moral theories, principles, and rules pertaining to antitrust ethics, especially as it pertains to dynamic competition and "fair and competitive" executive behavior. (shrink)

Business groups dominate the economic landscape in many economies around the world. While business groups overcome the institutional voids arising due to inefficiencies of external markets, they also possess market power, which could be economically and socially counterproductive, especially for unaffiliated firms. Drawing on the transaction cost and industrial organization economics, we examine whether the presence of business group affiliated firms in industries restricts the entry of unaffiliated firms or firms affiliated with small- and medium-size business groups. Findings based on (...) Indian firms suggest that investments by business group affiliated firms in an industry have an inverted U-shaped relationship with the investment by unaffiliated firms. However, investments by firms affiliated with large-sized business groups have a U-shaped relationship with the investment by affiliates of small and medium business groups. These findings suggest that the market power of business groups and entry barrier relationship is contingent on the size of the business groups. (shrink)

In the wake of recent corporate scandals, this paper examines the claim made by John Boatright that business ethics, as it is currently conceived, “rests on a mistake.” Ethics in business should not be achieved through managerial vision, discretion or responsibility; rather, ethics should shape the design of institutions that regulate business from the outside. What ethicists should advocate for, according to Boatright, are moral markets not moral managers. I explore the empirical and normative dimensions of his claim with special (...) attention paid to the extent to which Boatright’s development of the economic theory of the firm supports his position. I conclude by suggesting some reasons why moral markets and moral management are compatible frameworks for corporate reform. (shrink)