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Joint Ventures - www.swapnotes.com Joint Ventures...

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Joint Ventures Overview “Joint venture ”- any association of 2 or more firms for carrying on some activity that each firm might otherwise perform alone (Hovenkamp) Purpose of joint ventures barb2right increase efficiency [good]; increase market power [bad] o Therefore, courts will often struggle to deal w/ this inherent tension Why do we look at joint ventures more closely than unilateral actions? o Joint ventures can result in mkt power being attained very quickly…whereas, a monopolist does not become a monopolist overnight o We actually allow a monopolist to set a monopoly price as long as it does not engage in anticompetitive exclusionary practices designed to maintain or strengthen its monopoly position…BUT joint ventures are only allowed to the extent that they result in increased output and lower prices Some “joint ventures” are simply fronts for naked restraints of trade…these will be condemned
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