2026/03/01 星期日

Civilizational Antitrust and Market Structure Rebalancing A Life-Value-Oriented Reformulation of Industrial Organization Theory

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日期:2026/02/28   IAE 

Civilizational Antitrust and Market Structure Rebalancing

A Life-Value-Oriented Reformulation of Industrial Organization Theory

Author: Frank Chen
School of Thought: Civilizational Economic School (Charity Economicism)

Abstract

Traditional antitrust theory evaluates market power primarily through price effects, output restriction, and allocative efficiency. However, such frameworks systematically omit civilizational externalities—ecological degradation, intergenerational risk transfer, and systemic life-value erosion. This paper proposes a Civilizational Antitrust Model (CAM) that extends industrial organization theory by incorporating life-value-adjusted marginal cost and civilizational risk constraints into market equilibrium analysis.

We demonstrate that conventional monopoly, oligopoly, and monopolistic competition equilibria systematically underprice long-term civilizational costs. By introducing a Life-Adjusted Pricing Condition (LAPC) and a Civilizational Antitrust Index (CAI), we show that optimal market regulation should minimize civilizational opportunity cost subject to a sustainability constraint CR≤1CR \leq 1.

The framework provides a normative and formal basis for restructuring antitrust doctrine toward long-run survival optimization.

1. Introduction

Modern antitrust policy rests on two core metrics:

  1. Price relative to marginal cost

  2. Market concentration (e.g., HHI)

Under the standard framework:

 

 

P>MC⇒WelfareLossP > MC \Rightarrow Welfare Loss

Yet this formulation omits:

  • External ecological costs

  • Intergenerational depletion

  • Civilizational systemic risk

This omission becomes critical when large-scale industries—energy, AI, extraction, finance—generate risk beyond conventional welfare loss.

We argue that:

Antitrust must evolve from price-efficiency analysis toward civilizational risk minimization.

2. Standard Industrial Organization Model

Consider inverse demand:

P(Q)=a−bQP(Q) = a - bQ

Private cost:

C(Q)=cQ+d2Q2C(Q) = cQ + \frac{d}{2}Q^2

Marginal cost:

MC(Q)=c+dQMC(Q) = c + dQ

Under monopoly:

MR=MCMR = MC a−2bQ=c+dQa - 2bQ = c + dQ QM=a−c2b+dQ^{M} = \frac{a-c}{2b+d}

Price:

PM=a−bQMP^{M} = a - bQ^{M}

This equilibrium ignores external and civilizational costs.

3. Civilizational Cost Extension

Define external ecological cost:

EC(Q)=e2Q2EC(Q) = \frac{e}{2}Q^2 MEC(Q)=eQMEC(Q) = eQ

Define life-value loss (civilizational risk contribution):

LV(Q)=v2(κQ)2LV(Q) = \frac{v}{2}(\kappa Q)^2 MLV(Q)=vκ2QMLV(Q) = v\kappa^2 Q

Total social marginal cost:

MSC(Q)=MC(Q)+MEC(Q)+MLV(Q)MSC(Q) = MC(Q) + MEC(Q) + MLV(Q) MSC(Q)=c+(d+e+vκ2)QMSC(Q) = c + (d+e+v\kappa^2)Q

4. Life-Adjusted Pricing Condition (LAPC)

Civilizational equilibrium requires:

MR=MSCMR = MSC a−2bQ=c+(d+e+vκ2)Qa - 2bQ = c + (d+e+v\kappa^2)Q QC=a−c2b+d+e+vκ2Q^{C} = \frac{a-c}{2b + d + e + v\kappa^2}

Because:

d+e+vκ2>dd + e + v\kappa^2 > d QC<QMQ^{C} < Q^{M}

Thus:

Life-adjusted equilibrium reduces output and raises price relative to monopoly equilibrium but lowers civilizational risk.

5. Civilizational Antitrust Index (CAI)

Traditional HHI measures structural concentration. We extend it:

CAI=HHI⋅(1+ϕCR)CAI = HHI \cdot (1 + \phi CR)

Where:

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  • CRCR = civilizational risk index

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  • ϕ\phi = amplification parameter

Regulatory trigger condition:

CAI>CAIthresholdCAI > CAI_{threshold}

This incorporates systemic ecological and intergenerational risk into antitrust screening.

6. Oligopoly Extension (Cournot with Civilizational Costs)

Standard Cournot output:

Qi=a−cb(n+1)Q_i = \frac{a-c}{b(n+1)}

Civilizational correction:

QiC=a−cb(n+1)+e+vκ2Q_i^{C} = \frac{a-c}{b(n+1) + e + v\kappa^2}

As civilizational parameters increase, equilibrium output contracts and systemic risk declines.

7. Civilizational Opportunity Cost Minimization

Define Civilizational Opportunity Cost (COC):

COC=Resource Depletion+Ecological Damage+Intergenerational LossCOC = Resource\ Depletion + Ecological\ Damage + Intergenerational\ Loss

Policy objective:

min⁡COC\min COC

Subject to sustainability constraint:

CR≤1CR \leq 1

This replaces conventional objective:

min⁡(P−MC)\min (P - MC)

8. Capital Cost Adjustment Mechanism

Let financing rate depend on civilizational risk:

rc=r+θCRr_c = r + \theta CR

Firms with high civilizational risk face higher capital costs, accelerating structural rebalancing.

9. Welfare Comparison

Social welfare under conventional model:

WM=CS+PS−ECW_M = CS + PS - EC

Under civilizational model:

WC=CS+PS−EC−LVW_C = CS + PS - EC - LV

Because LVLV grows convexly in output, ignoring it overstates welfare in high-risk industries.

10. Normative Implications

Civilizational antitrust doctrine should:

  1. Incorporate ecological and intergenerational risk

  2. Condition merger approval on CAI

  3. Apply life-adjusted pricing in high-risk sectors

  4. Introduce civilizational capital requirements

11. Conclusion

This paper reformulates antitrust theory by embedding life-value costs into marginal analysis.

The central transformation is:

Max Efficiency⇒Min Civilizational Opportunity CostMax\ Efficiency \Rightarrow Min\ Civilizational\ Opportunity\ Cost

Industrial organization must evolve from static allocative efficiency toward long-run survival optimization.

Suggested Journal Targets

  • Ecological Economics

  • Journal of Institutional Economics

  • Journal of Economic Behavior & Organization

  • Review of Industrial Organization

  • World Development

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