In this chapter, students will be able to understand: List and explain the core elements of the major antitrust (antimonopoly) laws in the United States, describe some of the key issues relating to the interpretation and application of antitrust laws, identify and explain the economic principles and difficulties relating to the setting of prices (rates) charged by so-called natural monopolies, discuss the nature of social regulation, its benefits and costs, and its optimal level.
Trang 1Antitrust Policy and Regulation
Trang 2Antitrust Laws
Trang 3Antitrust Laws
Trang 4Antitrust Policy
Trang 5• AT&T
Trang 6Autos
Glass
Blue Jeans
Denim Fabric
Z Y
X W
V U
T
Horizontal Merger Conglomerate Merger
Vertical Merger
Trang 7• Merger guidelines
Mergers
Trang 8Industrial Regulation
Trang 9Commission
(Year Established)
Jurisdiction
Federal Energy Regulatory
Commission (1930)*
Electricity, gas, gas pipelines, oil pipelines, water-powered sites
Federal Communications
Commission (1934)
Telephones, television, cable television, radio, telegraph, CB radios, ham operators
State public utility
commissions (various years)
Electricity, gas telephones
*Originally called the Federal Power Commission, renamed in 1977
Trang 10natural monopoly “fair return”
end
Trang 11consumers and society
Trang 12which goods and services are
produced
industries
Trang 13Commission
(Year Established) Jurisdiction
Food and Drug Administration
(1906)
Safety and effectiveness of food, drugs, and cosmetics
Equal Employment Opportunity
Commission (1964) Hiring, promotion, and discharge of workers
Occupational Safety and Health
Administration (1972) Industrial health and safety
Environment Protection Agency
(1972) Air, water, and noise pollution
Consumer Product Safety
Commission (1972)
Safety of consumer products
Trang 14better than more