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Antitrust Laws

Antitrust Laws. Laws aimed at eliminating collusion and promoting competition among firms. Antitrust Laws. Illegal Practices. Price fixing: colluding with other firms to set prices

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Antitrust Laws

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  1. Antitrust Laws Laws aimed at eliminating collusion and promoting competition among firms.

  2. Antitrust Laws

  3. Illegal Practices • Price fixing: colluding with other firms to set prices • Predatory pricing: lowering prices so as to drive current competitors out of business or discourage potential competitors from entering the market • Parallel conduct: Implicit collusion in which one firm consistently follows the actions of another

  4. Enforcement • Antitrust division of the Department of Justice • Federal Trade Commission • Private lawsuits

  5. Mergers • Antitrust division of the Department of Justice and FTC oversee proposed mergers • Must define scope of market • Must measure concentration in market

  6. Cable Merger http://www.npr.org/templates/story/story.php?storyId=1143866

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