COB 218 Chapter Notes - Chapter 19: Resale Price Maintenance, Horizontal Market, Monopoly
15 Dec 2016
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Section 1: concerned with finding an agreement leading to restraint of trade. Section 2: structure of a monopoly that exists in marketplace. Monopoly: market with a single seller or very limited number of sellers. Monopoly power: ability of a monopoly to dictate what takes place in a given market. Market power: power of a firm to control the market price of its market. Section 1 violation requirements: agreement between two or more parties, unreasonably restrains competition, affects interstate commerce. Jurisdiction requirements: only applies to restraints that have a substantial impact on interstate commerce. Per se violations: blatant and substantially anticompetitive: why rule of reason was developed. Horizontal restraints: price fixing, per se, group boycotts, per se, horizontal market division, per se, trade associations, rule of reason. Vertical restraints: territorial or customer restrictions, resale price maintenance agreements. Section 2: price discrimination: three defenses, cost justification, (cid:373)eeti(cid:374)g (cid:272)o(cid:373)petitor"s pri(cid:272)es, changing market conditions. Section 7: mergers: horizontal: same type, vertical: go up.
