Should antitrust law treat the two situations differently

Assignment Help Microeconomics

Reference no: EM133613771

Problem: The Seventh Circuit's opinion and the book's discussion of JTC Petroleum highlight how colluding firms can employ exclusionary conduct to prevent erosion of their cartel by non-participating rivals. Suppose instead that there were only two road contractors: Piasa, a dominant firm, and JTC, which did not want to charge as high a price as Piasa would like. Suppose further that Piasa acted alone in soliciting the asphalt producers to refuse to deal with JTC, in order to raise road contracting prices. Would the economic consequences be any different than if Piasa were acting together with other members of the road contractor's cartel to exclude JTC? If not -- if the economic harms from exclusionary conduct by a dominant firm would be similar to the economic harms from exclusionary conduct by several road contractors working together -- should antitrust law treat the two situations differently?

Reference no: EM133613771

Questions Cloud

Design and develop an empirical investigation : MS6UK57O Business Research Project, University of West London - design and develop an empirical investigation on a specific, current business issue

Staying in wheelchair when traveling in car : Describe the advantages and disadvantages of staying in a wheelchair when traveling in a car.

What would you suggest to curb the countrys trade deficit : What would you suggest to curb the country's trade deficit? Base your response on ABC's pattern of trade balances with other trading partners around the world.

Smashed to pieces on wall behind the victim : A glass ashtray thrown at the victim that smashed to pieces on the wall behind the victim.

Should antitrust law treat the two situations differently : Would the economic consequences be any different than if Piasa were acting together. Should antitrust law treat the two situations differently?

We are fortunate to have museum in our community : We are fortunate to have this museum in our community. Interview with Kevin Kelly, the Executive Director of the Museum

Petitioners allege that the statute violates : What does the statute in question prohibit? And what part of the Constitution do the petitioners allege that the statute violates?

How such a cost change in market would affect equilibrium : Explain, using the supply and demand model, how such a cost change in the market would affect the equilibrium market price and quantity.

What are their sales and revenue : What are their sales and revenue, how many employees do they have? Who are their competitors, are they larger and smaller than the competition

User Account

All Pages