econ paper 1

econ paper 1 - Ravi Desai Economics 3535 5/7/2008 1....

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Ravi Desai Economics 3535 5/7/2009 1. British Airways and Virgin Atlantic have agreed to settle a U.S. price-fixing lawsuit over fuel surcharges. The U.S. law firm that had filed the class-action suit said that the two airlines could pay $200 million or more to customers who flew between August 11, 2004 and March 23, 2006. The airlines were accused of colluding in setting fuel surcharges on longer flights. The passengers who purchased tickets in the U.S. or Britain for long route travels during the time frame will be entitled a third of the fuel surcharge, which could be worth between $1.50 and $20.50 per ticket bough in the U.S. The agreement would entitle $59 million for American ticket purchasers and $145 million for Britain purchasers. British Airways was also previously fined more than $500 million by U.S. and British authorities for its role in the fuel-surcharge price-fixing case. 2. The courts are reluctant in balancing the good and bad effects because they are skeptical of efficiencies claims in merger cases. The hospitals’ agreed to “unify substantially all hospital operations, including creating a single parent board, merging medical staffs into Mid-Hudson, combing development and control over clinical services and integrating administrative services.” In the five years that it took the court to make its decision, Mid-Hudson had utilized a joint rate setting and joint negotiations with payers; “trades” of service offerings between the hospitals to eliminate as much duplication as possible, and an implementation of the “fairness formula.” The parties
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This note was uploaded on 05/05/2008 for the course ECON 3535 taught by Professor Blackstone during the Spring '08 term at Temple.

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econ paper 1 - Ravi Desai Economics 3535 5/7/2008 1....

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