The Antitrust Laws of the United States of America: A Study of Competition Enforced by Law

By A. D. Neale | Go to book overview

CHAPTER III
AGREEMENTS BETWEEN COMPETITORS. III. AGREEMENTS AMONG SMALL GROUPS

1. Collusion and oligopoly: the law of conspiracy in antitrust

In Chapter I it was shown that all price-fixing agreements between competitors, including agreements designed to 'manipulate' pricelevels by keeping surplus supplies off the market, are illegal per se under the Sherman Act, so long as they have or are meant to have a significant effect on competition. Most cases reaching the courts are in practice straightforward, so that the Trenton Potteries case, for example, is an adequate model for settling them. But sometimes, as was seen, difficult borderline questions of fact arise. If businessmen are fully informed of all the factors in the market situation, may it not happen that they independently and quite rationally refrain from cutting each other's throats, so that an absence of price-competition is explained without postulating agreement or conspiracy? How is this situation, which is beyond the reach of the law,1 to be distinguished from that which arises from illegal agreement? The 'open competition' and basingpoint cases illustrating this point showed, however, that it is very difficult, at least for large groups of competitors, to avoid pricecompetition without to some extent 'organizing' the requisite mutual restraint; in practice, collusion is often present and, if present, is usually detected. But it still seemed possible that among small groups of competitors an absence of price-competition might escape legal penalty, either because it arose from a genuinely 'oligopolistic' mutual restraint or because, if there were a common understanding among the group, it might be successfully concealed.

Chapter II reached much the same point in respect to agreements between competitors to exclude outsiders from the market or to divide the market and avoid competition among themselves. Once again the majority of cases are in practice straightforward and easily decided by reference to such precedents as the Addyston Pipe case or that of the Fashion Originators Guild. Once again there comes a point at which

____________________
1
'The defendants cannot be ordered to compete, but they properly can be forbidden to give directiops or to make arrangements not to compete.' Mr Justice Holmes in Swift and Company v. United States ( 1905).

-81-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Antitrust Laws of the United States of America: A Study of Competition Enforced by Law
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 516

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.