The Ruling Against American Airlines-JetBlue Provides a Chance To Reform Antitrust’s Rule of Reason

Herbert Hovenkamp writes that the First Court’s recent ruling against American Airlines and JetBlue for coordinating operations in New York City and Boston exemplifies the correct application of antitrust’s rule of reason, which has troubled courts and plaintiffs and led to underenforcement for decades.

Antitrust’s rule of reason is a mess. The problem is not how the rule is articulated but rather how it is applied. However, the First Circuit’s recent decision against…