Ch. 16 (Part II) - Antitrust Law Antitrust Law Chapter...

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Unformatted text preview: Antitrust Law Antitrust Law Chapter Sixteen Antitrust Law Antitrust Law Sherman Act, Section 2: “Every person who shall monopolize, or attempt to monopolize … shall be deemed guilty of a felony” Two requirements: Monopoly power in a relevant market Exclusionary conduct Antitrust Law Antitrust Law Monopoly power analysis: What is the relevant market? How many competitors are in that market? What, if any, are the barriers to entry? Exclusionary Conduct Antitrust Law Antitrust Law Clayton Act Price Discrimination Special Arrangements Tying contracts Reciprocal dealing Exclusive dealing Mergers and Acquisitions Antitrust Law Antitrust Law Antitrust Law Antitrust Law Whole Foods CEO Statements: “By buying [Wild Oats] we will … avoid nasty price wars in Portland (both Oregon and Maine), Boulder, Nashville, and several other cities … .” Antitrust Law Antitrust Law Whole Foods CEO Statements: “[Wild Oats] is the only existing company that has the brand and number of stores to be a meaningful springboard for another player to get into this space. Eliminating them means eliminating this threat forever, or almost forever.” Antitrust Law Antitrust Law Whole Foods CEO Statements: “Safeway and other conventional retailers will keep doing their thing – trying to be all things to all people . . .they can’t really effectively focus on Whole Foods Core Customers without abandoning 90% of their own customers.” ...
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