Ps Study Guide

Topics: United States antitrust law, Sherman Antitrust Act, Clayton Antitrust Act Pages: 6 (1387 words) Published: March 6, 2013
Assess antitrust and associationalism as distinctive sets of regulatory principles. Compare and contrast these principles as they signify fundamental attitudes toward private business, the market, and government intervention. Drawing broadly from the course materials, critically discuss the strengths and weaknesses of each approach as a means for securing more public‐regarding behavior on the part of U.S. business.

Anti Trust
a. common law principles of business regulation prior to modern anti trust era anti trust movement and agrarian laws (1880s) b. anti trust debate of bus coop and advocates of business competition c. Sherman ac t of 1890 and 3 part evolution (from free unrestricted competition to rule of reason) d. FTc and clayton act

e. •The Sherman Act of 1890

Sherman Anti Trust Law
–Section 1: “Every contract, combination . . . or conspiracy in restraint of trade or commerce among the several states . . . is hereby declared to be illegal before used common law but that only works when it is slow pace and no massive scales of economies

Anti trust movement 1880s-1890s
a. common law tolerance toward combinations in restraint of trade! b. Replace with strict and punitive statutory actions to break up horizontal combinations c. Question of competition and cooperation in industrial economy

In favor of cooperation Theo Roosevelt
a. abundance efficiency and productivity from economics of scale b. consumer welfare cost savings stretches dollar
c. conservation: less waste of natural resources
d. economic stability: moderation of bus cycle
e. social and moral responsibilities --? Coop, worker welfare, and public philan 5 dollar a day work day and the 8 hour day for ford, Carnegie endownment for international peace, morality in decision making competitive economy reduces moral playing field in the market place to the level of its least ethical members

In favor of enforced competition WIllaim Jennings Bryan
a. supply and deman is only NO ARBITRARY mechanism available for regulating distribution of power in the market place b. Tru coop confers the power to do good for society also confers the power to do harm power corrupts c. Market comp as the crucla comm. safeguarde against arbitrary and unjust economic power d. Waste and ineffieiceny is the price a free people pay or security against domination e. Constitution limits powers in checks and balances, dual fed, f. Concentration of econ power leads to concen of gov power

1880-1890 states break with common law tradition of bus regulation state statutes command market participants to compete in marketplace or face sanctions ANY RESTRAINT on competition is illegal free nad unrestricted competition no distinction made between a. combos that improve bus eff and cons welfare

b. combos created onlu to set prices, gouge cons, dominate the marketplace c. EACH ARE ILLEGAL PER SE illegal on their face, regardless of justification

Third View Brandies opposed all forms of big bus coop and new agrarian anti trust laws agrees with agrarians that bigness is not natural and runs counter to public values- big bus doesn’t get big through economies of scale and efficiency gains through collusion and other anticomp market practices

BUT size – greater eff – lower costs = cons welfare gains but econ concen is inconsistent wth democ must have wide distr of property

breaks with agrarians over their indiscriminate commitment to market comp treat 2 colluding prods the same brandeis thought the small bus shouldn’t be treated like euquals small bus needs more protection

anti trust should be histile to cooperation and combination by big business (even at expense of eff and cons welfare) but tolerant of (and even facilitative of) coop and combination by small bus

Fed response to trust problem sherman anti trust of 1890 sherman act allows attorneys to institute...
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