Lecture 11

Lecture 11 - Chapter 14: Regulation and Antitrust Law Exams...

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1 Exams can be picked up from your TA this week Rough guide to grading scale • A: 85-100 • B: 70-84 • C: 55-69 • D: 40-54 • F: below 40 • class average on first exam: 66 More info at course web page Chapter 14: Regulation and Antitrust Law A. Regulation of natural monopoly B. Regulation of oligopoly C. Antitrust law 1870– John D. Rockefeller began buying up oil producers and refineries By 1890, Standard Oil controlled 88% of U.S. refined oil market HHI = 88 2 + … > 7744 John D. Rockefeller 1901– J.P. Morgan and Andrew Carnegie combined 10 companies to form United States Steel (67% of U.S. market) J.P. Morgan Sherman Antitrust Act (1890): “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.” Sherman Antitrust Act (1890): “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.” Amended to: $100 M and 10 years under H.R. 1086 (signed into law June 2004)
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This note was uploaded on 03/21/2009 for the course ECON 2 taught by Professor Kim during the Spring '08 term at UCSD.

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Lecture 11 - Chapter 14: Regulation and Antitrust Law Exams...

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