Oftentimes, if one airline lowers its prices on a particular route, so will all of the others. What
is this type of activity called and is it a violation of the antitrust laws?
Refusal to deal/ it is a rule of reason violation
Conscious parallelism/it is not a violation by itself
Price discrimination/it is a per se violation
Resale price maintenance/ it is a rule of reason violation
A horizontal merger is illegal if:
Samantha manufactures 60 percent of the titanium screws sold in the United States. Does she
have a monopoly on this product? What would you need to know to answer this question?
Texaco sold gasoline in Spokane, Washington to independent retailers and also to Gulf Oil,
which operated its own filling stations and also sold to retailers. Texaco charged a
substantially lower price to Gulf than to the independent retailers. These retailers sued Texaco,
alleging that this price structure violated the Robinson Patman Act. At trial, the retailers
presented evidence that they could not compete against Gulf. Texaco did not present evidence
that the different prices it charged reflected the costs of serving these two sets of customers.