<p><a href="http://www.law.nyu.edu/sites/default/files/ECM_PRO_060889.pdf" rel="nofollow noreferrer">This article</a> states:</p>

<blockquote>
  <p>In  both  of  his  seminal  works  in  political  theory, 
  <em>The  Constitution  of  Liberty</em>  and <em>Law, Legislation and Liberty</em>, Hayek endorsed as a legitimate function of the state the  power  to  regulate  monopolies  and  curtail  industry  practices  in  restraint  of  trade. </p>
</blockquote>

<p>For example, in the first book, in Chapter 15, Hayek declares the importance of the <em>nature</em> of government intervention:</p>

<p><a href="https://i.sstatic.net/VsWHd.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/VsWHd.png" alt="enter image description here"></a></p>

<p>Notice that Hayek considered trade unions as workers' monopolistic institutions that damaged free market. Hence, in his view, these are undesirable. In Chapter 18 of the above books it says:</p>

<p><a href="https://i.sstatic.net/8vwKY.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/8vwKY.png" alt="enter image description here"></a></p>

<p>More on monopoly is in Chapter 17:</p>

<p><a href="https://i.sstatic.net/tJccS.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/tJccS.png" alt="enter image description here"></a></p>

<p><a href="https://i.sstatic.net/5Cb1r.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/5Cb1r.png" alt="enter image description here"></a></p>

CC BY-SA 3.0
2017-10-17T15:45:38.287Z
2017-10-17T19:41:43.390Z
2017-10-17T19:41:43.390Z
luchonacho
<p><a href="https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot" rel="nofollow noreferrer">This article</a> claims Hayek endorsed competition regulation:</p>

<blockquote>
  <p>As it evolved, neoliberalism became more strident. Hayek’s view that governments should regulate competition to prevent monopolies from forming gave way – among American apostles such as Milton Friedman – to the belief that monopoly power could be seen as a reward for efficiency.</p>
</blockquote>

<p>In which work did Hayek advance such view?</p>

<monopoly><competition><regulation><austrian>
Hayek's defense of competition regulation
Incognito
# Hayek's defense of competition regulation

(Asked by: username_0 on 2017-10-17)

[This article](https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot) claims Hayek endorsed competition regulation:

> As it evolved, neoliberalism became more strident. Hayek’s view that governments should regulate competition to prevent monopolies from forming gave way – among American apostles such as Milton Friedman – to the belief that monopoly power could be seen as a reward for efficiency.

In which work did Hayek advance such view?

**Tags:** monopoly, competition, regulation, austrian


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## 1 answers

### Answer by username_1 on 2017-10-17. Score: 3 | Accepted answer

[This article](http://www.law.nyu.edu/sites/default/files/ECM_PRO_060889.pdf) states:

> In both of his seminal works in political theory,
> *The Constitution of Liberty* and *Law, Legislation and Liberty*, Hayek endorsed as a legitimate function of the state the power to regulate monopolies and curtail industry practices in restraint of trade.

For example, in the first book, in Chapter 15, Hayek declares the importance of the *nature* of government intervention:

[![enter image description here](https://i.sstatic.net/VsWHd.png)](https://i.sstatic.net/VsWHd.png)

Notice that Hayek considered trade unions as workers' monopolistic institutions that damaged free market. Hence, in his view, these are undesirable. In Chapter 18 of the above books it says:

[![enter image description here](https://i.sstatic.net/8vwKY.png)](https://i.sstatic.net/8vwKY.png)

More on monopoly is in Chapter 17:

[![enter image description here](https://i.sstatic.net/tJccS.png)](https://i.sstatic.net/tJccS.png)

[![enter image description here](https://i.sstatic.net/5Cb1r.png)](https://i.sstatic.net/5Cb1r.png)


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