New in CPS by Chase Foster & Kathy Thelen: Coordination Rights, Competition Law and Varieties of Capitalism

Competition law is a constitutive institution in capitalist markets, establishing the rules for when interfirm coordination is allowed and where competition is required (Paul, 2020). Yet comparativists have spent decades debating the varieties of capitalism framework—which places the issue of coordination at the center of the distinction between capitalist types—while paying virtually no attention to cross-national variation in antitrust rules. This article develops an original theoretical framework to conceptualize the relationship between competition law and the organization of capitalism. We go beyond the usual binaries (coordinated vs. liberal market economies, “restrictive” vs. “permissive” antitrust regimes) to disentangle two dimensions of the law that fundamentally shape patterns of coordination and competition both across regulatory jurisdictions and over time. Applying our framework to analyze the evolution of American and European competition law, we show how a comparative coordination rights framework can be used to conceptualize key institutional changes within contemporary capitalist systems.