d The economists depiction of deadweight loss to efficiency that monopolies

D the economists depiction of deadweight loss to

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should form part of the agreements” (“Competition Law”, n.d.) “The economist's depiction of deadweight loss to efficiency that monopolies cause” (“Competition Law”, n.d.). PROSPECTS: Benefits Achieved: (Lawrence, Weber, & Post, 2005, p. 192) o Disband monopolistic activities through deregulation o Enhances interstate and international commerce o Ensures competitive industry and economy o Preserves competitive market prices Page 4 of 8
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BMAL 560 o Protects consumers against unfair business practices o Protects consumers purchasing power by saving jobs and businesses o Restricts price discrimination unless justified by cost o Competition promoted fosters technological innovation Explained Use: (Meier et al, 1998, p.75-108) o Enables federal government to bring litigation against businesses o Enables state government to bring litigation against businesses o Enables private citizens to bring litigation against businesses through state o Induces competition and cooperation through harassment, harm, and extortion o Prohibits use of power to control marketplace Opposing Viewpoints and Alternatives: (Werden, 1992) o Antitrust laws do more harm than good o Antitrust doesn’t stimulate true competition o Existence of antitrust laws discourages business from socially useful activity o Antitrust’ “predatory pricing” is ineffective and does not work o Suspicious and critical of government intervention in economy o Let the market and economy self-regulate o Impact of antitrust policy on the competitiveness of U.S. firms internationally o Economic concentration eliminates effective price competition and reduces consumer choices (Lawrence, Weber, & Post, 2005, p.196-197) PROBLEMS: Enforcement is scarce and sketchy Litigation is lengthy and requires extensive time and money Interpretation and vagueness of act; businesses unclear on provisions Cases examined and judged under a “rule of reason” analysis (An Antitrust Primer, 2005.) Insufficient resources to implement provisions Subject to bias and inaccurate information Challenged since inception due to language ambiguities Forever balanced between being too wide-reaching and too narrow in scope PERFORMANCE: Very effective in deregulation and as an anti-union tool Page 5 of 8
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BMAL 560 Used as a tool to induce cooperation through harassment and harm Presidents Theodore Roosevelt and William Taft sued 120 companies under provisions of the Sherman Antitrust Act (Werden, 1992) U.S. Supreme Court (1911) agreed that Standard Oil violated the Sherman Antitrust Act In 1982 Reagan administration used Sherman Antitrust Act to dismantle AT&T In 1999 Department of Justice sued Microsoft under Antitrust Act provisions Protects competitive process of U.S. economy Hailed as a “consumer welfare prescription” by U.S. Supreme Court (DeMasi, 2007, p.36) Information and knowledge will offer enhanced perspective on provisions Information and knowledge will offer an effective market work climate Evolves to meet the challenges of an ever-changing social world PUBLICATIONS: References Cited: An Antitrust Primer (2005). Retrieved from This publication describes details about various problems related to litigation. The author propses that litigation is lengthy and requires extensive time and money.
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