MGMT 211 Chapter 8

MGMT 211 Chapter 8 - CHAPTER 8 What is Anticompetitive? o...

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CHAPTER 8 What is Anticompetitive? o The way to increase profit is to do something better than your competitors or do something to derail your competitors When you do something to derail that is called anticompetitive Doing something better than your competitors is not anticompetitive Craft v. McConughy (TIER 1) o 1875 o Significance: Established antitrust common law o Went to state supreme court o Supreme court found that this price fixing was illegal restraint of trade Interstate Commerce Commission regulates railroads Sherman Antitrust Act of 1890 o Statutory Law o Antitrust is anti-big-business o Much more punitive and severe and criminal based, more broad based than Clayton o Two sections Section 1 deals with illegal restraints of trade Requires at least 2 or more parties Section 2 deals with monopolies Deals with Price Discrimination Can be just 1 party but can also be more than 1 A situation could fall under either section Clayton Antitrust Ac t of 1914 o Much more preventative, restrictive, civil, more specific than Sherman Price Discrimination: change different buyers different prices without justification
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Exclusionary Dealing: Where one firm is given the exclusive right, to the exclusion of others, to buy, sell or trade another’s product o Exclusionary Practice: You are the only one that can sell this product in the area o Exclusionary Dealing: If you sell our product you cant sell our competitors product. Tying Arrangements: Buy one get one half off; sometimes illegal
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This note was uploaded on 11/04/2009 for the course MGMT 211 taught by Professor Swim during the Spring '08 term at Texas A&M.

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MGMT 211 Chapter 8 - CHAPTER 8 What is Anticompetitive? o...

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