Re:Want to rescue rural America? Bust monopolies
by arrosenberg on Sunday April 23, 2017 @04:08PM
(#14180186)
It would be better if you just used the obvious historical precedent - Standard Oil integrated with rail services by negotiating discounts that provided an insurmountable barrier to entry for smaller competitive. It was restraining trade, and while prices may have benefited consumers in the short run, the lack of competition would have been a negative over the long run.
Re:Want to rescue rural America? Bust monopolies
by WalterBright on Sunday April 23, 2017 @03:24PM
(#14179925)
> if the only restaurant in the USA is Applebee's
Except that it isn't the only restaurant. You need a much better example.
Re:Want to rescue rural America? Bust monopolies
by bko on Sunday April 23, 2017 @03:46PM
(#14180065)
The ironic thing is that the only way I can conceive we could be in a situation in which there is only one restaurant in the USA, is through over-regulation and treating restaurants as a utility. Food is important after-all and can't be left to the markets, as some may argue.
"But exclusive dealing also can be anticompetitive in some circumstances. For example, exclusive dealing may allow one manufacturer, in effect, to monopolize efficient distribution services and thereby prevent its rivals from competing effectively. As then-Judge Breyer explained, exclusive dealing can harm consumers by thwarting entry or inhibiting the growth of existing rivals:
'Exclusive dealing arrangements may sometimes be found unreasonable under the antitrust laws because they may place enough outlets, or sources of supply, in the hands of a single firm (or small group of firms) to make it difficult for new, potentially competing firms to penetrate the market. To put the matter more technically, the arrangements may "foreclose" outlets or supplies to potential entrants, thereby raising entry barriers. Higher entry barriers make it easier for existing firms to exploit whatever power they have to raise prices above the competitive level because they have less to fear from potential new entrants.'"
https://www.justice.gov/atr/competition-and-monopoly-single-...