Classicism, Neoclassicism, and the Sherman Act

Document Type

Book Chapter

Publication Date



This chapter outlines neoclassical economic thinking on competition and the problem of monopoly under the Sherman Act. It focuses on a selection from Alfred Marshall's Principles of Economics, and Arthur Twining Hadley's adaptation and implementation of this on the American economic system. It analyzes Marshall's theories in answering issues raised for antitrust policy regarding fixed costs. It discusses the new economic models about firm behavior and the relationship between scale economies and market size as an answer to the fixed cost problem. It also looks into Henry Hatfield's account of the 1899 Chicago Trusts Conference that brought an assortment of intellectual, business, and political figures convening at an antitrust conference.


neoclassicism, sherman Act, Alfred Marshall, Principles of Economics, Arthur Twining Hadley, anti-trust policy, fixed costs, Henry Hatfield, Chicago Trusts Conference

Publication Title

The Making of Competition Policy: Legal and Economic Sources