COLLEGE FINANCIAL-AID AND ANTITRUST - APPLYING THE SHERMAN ACT TO COLLABORATIVE NONPROFIT ACTIVITY

Economic theory says that nonprofit organizations address market failures by pursuing noncommercial goals. Yet antitrust doctrine, Srikanth Srinivasan argues, takes inadequate account of nonprofits' ability to advance social welfare in this manner. Focusing on the district court and Third Circuit opinions in United States v. Brown University, Mr. Srinivasan contends that prevailing antitrust standards fail to promote proper analysis of the potential benefits of cooperation among nonprofits. He proposes an approach that more effectively channels judicial inquiry toward determining whether nonprofit collaboration improves social welfare.