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Legal Cartel Theory
A theory suggesting that a group of like minded people are colluding with each other to improve their profits and dominate a market. -
Regulation on Natural Monopolies
Regulation of natural monopolies happens through antitrust laws and by the government. This is done by through price capping and preventing the growth of monopoly power. -
Effectiveness of Antitrust Laws on Price Fixing
The effectiveness of antitrust laws on price fixing is effective because the FTC and department of justice doesn't only focus on the price fixing aspect but on other aspects as well liker cost, capacity, and present or future prices. -
Effectiveness of Antitrust Laws on Monopolies
The effectiveness of the antitrust laws were not as effective as the merger guidelines because the laws only became effective when a monopoly destroys the ability of another company to enter and compete. -
Sherman Antitrust Act
It was an act that was passed to outlaw trusts. Its purpose was to promote economic fairness. -
Issue of Enforcement
When the first Antitrust law was made the federal government made a division in the Department of Justice called the Antitrust Division. This division was created in order to enforce the federal antitrust laws. -
Example of Monopoly Behavior vs Monopoly Structure Interpretation
An example of this comparison would be Carnegie's Steel Company because the behavior of the monopoly focuses on steel and the structure of it was that of being really the only one in the market. -
Example of Social Regulation
An example of social regulation would be the FDA. This agency would be an example of social regulation because it is helping protect the interest of the public by protecting the public health through foods and the effectiveness and safety of drugs. -
Clayton Antitrust Act 1914
It was an act that that was used to strengthen the Sherman Antitrust Act and still continues to regulate business practices today. -
Federal Trade Commission Act
It was an act used to outlaw unfair methods of competition and unfair practices that affected commerce -
Wheeler-Lea Act
It was an act used to amend the the 5thsection of the Federal Trade Commission Act -
Cellar-Kefauver Act
It was an act that was used to give the government the ability to prevent vertical and conglomerate mergers so it it would limit competition. It was made to help strengthen the Clayton Antitrust Act -
Example of Monopoly Behavior vs Monopoly Structure Interpretation
An example of the comparison between them is the company Luxottica being that their behavior as a monopoly is that they have control over their supply but not their demand but the way they have it structured is that it so it only focuses on one product which is glasses. -
Example of Relevant Market Interpretation
An example would be the Monopolies and Restrictive Trade Practices Act (MRTP) which is an act. It was made to prohibit monopolistic and and restrictive trade policies and so that the economic system does not result in the concentration of of economic power in the hands of a few people. -
Deregulation
It is the elimination of government power in a particular industry. With this it usually enacted to create more competition within the industry. -
Problems with Industrial Regulation
The problems with industrial regulation is that the government can control the way firms behave by setting the prices or controlling the quantity of quality of goods produced. This may be negative because new firms coming into the industry they could be screwed over by how the industry is run. -
Example of Social Regulation
An example of a social regulation would be the EPA. The EPA would be an example of this because it is an agency made to help protect public interests such as ion this can the environment. -
Effectiveness of Antitrust Laws on Mergers
A main way the antitrust laws stay effective is the Hart-Scott-Rodino Act. The act is a program in which the FTC and the department of justice receives a premerger notification in which they can check the information behind the merger. -
Effectiveness of Antitrust Laws on Merger Guidlines
When created the merger guidelines were made so it would reduce the uncertainty of Antitrust Laws. With these guidelines they are intended to stop mergers that could lead to harmful effects of said merger. The effectiveness of these guidelines are effective because with these guidelines the division of antitrust laws of the department of justice have been able to make sure the mergers happening aren't causing harm. -
Criticism of Social Regulation
One example of the criticism of social regulation would be the case concerning the noise of airplanes and the act made for it. The Airport Noise and Capacity Act mandated that the elimination of certain aircraft at all U.S. airports by the end of 1999. It was made so that it would reduce welfare losses caused by externalities or threats to human health and safety.
