On Sept. 21, the Federal Trade Commission held the second day of its "Hearings on Competition and Consumer Protection in the 21st-Century." We offer some key takeaways. (The first hearing was held on Sept. 13.)

In his opening remarks, Joseph Stiglitz (Columbia University) observed that market power has increased over the last few decades, with adverse economic and political effects. The increase is attributable to the growth of network industries, product bundling, nonlinear pricing, preemptive acquisitions by dominant firms of new and nascent competitors, and anti-competitive extensions of patent protections. This has increased concentration, reduced innovation, increased barriers to entry, and exerted downward pressure on wages. In the aggregate, the share of income going to labor and capital has declined; the share going to owners has increased.

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