Tag: Bureau of Economics

Displaying 221 - 240 of 330 results.

In the 1980s, the antitrust enforcement agencies have rejected the idea that mergers in declining industries should receive special consideration. This paper develops reasons why declining industry mergers should not be subject to a high degree of antitrust scrutiny. It argues that...
Competitive access has been an important antitrust issue for the ICC since the Staggers Act of 1980 largely deregulated the railroad industry. This paper looks at the reasons why competitive access should and should not be an antitrust issue. Given the economics of vertical...
An empirical examination of the effects of the health claims in fiber cereals which began in 1984. Evidence indicates that health claims in advertising significantly alter consumer behavior and reach groups not otherwise reached by government and general health information.
Reviews recent evidence on oil industry mergers and concludes that conglomerate mergers have become less important and the mergers have had little impact on industry concentration.
This paper provides a critique of a recent paper in the Southern Economic Journal concerning the effectiveness of Certificate of Need (CON) regulation in controlling hospital costs. ("Regulation, Market Structure, and Hospital Costs," January 1989) The major problem with the paper is...
In a recent book, Cline estimated that current trade restrictions on textiles generate a net efficiency loss of $811 million annually, while those on apparel involve a loss of $7.3 billion. This paper, within the framework of Cline's analysis of textile and apparel trade restriction...
Report examines court records on public and private Sherman Act "countersuits" entailing allegations of sham litigation, between 1972 and 1985. Using an empirical approach, the report seeks to answer the question of "whether case law involving Sherman Act countersuits alleging sham...
St. Louis Terminal Railroad (1912) has been cited by a number of authors as a case of vertical foreclosure by competitive rivals. The alleged foreclosure has been used as a basis for the "Essential Facility Doctrine," an antitrust theory that has attracted a large degree of interest...
Using state-of-the-art modeling techniques, this report examines the costs of trade restraints in three industries. Findings indicate that voluntary export restraints in these industries cost the U.S. $21 billion in 1984 while "protecting" 174,000 jobs in the three industries. Thus,...
Tariffs and quotas are compared to assess their effects on firm behavior in a two-stage Cournot duopoly game, where R&D (or capital) is chosen initially and output is selected subsequently. In this quantity-setting game, the imposition of a quota may remove the possibility of a...
This study examines the relationship between diversification and predation. Unlike previous analyses, the focus is placed on the role of the firm's investments in sunk cost assets. Unlike the single product firm, the diversified firm may use certain firm-specific assets that are not...
The Federal Communications Commission limits the common ownership of multiple broadcast outlets in the same local market. This paper examines whether there are efficiencies from common ownership that might be realized by relaxing these restrictions. We focus primarily on a comparison...
Study finds that states using price cap regulation have 7-10 percent lower long-distance rates than states using rate-of-return regulation. In addition, state regulatory entry barriers tend to increase the price of long-distance telephone service.
An analytical model is employed to investigate competitive markets characterized by asymmetric consumer information as to product quality. Support is found for Leland's conclusion [1979] that a "lemons market" is a general phenomenon for such markets, as well as the conclusion that a...
Many economic studies find market concentration positively related to profits. The findings may be explained either by oligopoly behavior or by greater efficiency of firms with large market shares. Although both explanations imply that concentration and profits will be positively...
Regulators often confront the question of whether they should allow a regulated firm to vertically integrate. The relevant policy concerns are whether the downstream price will rise from the vertical integration and what, if any, additional constraints must be placed on the...
This paper provides a formal treatment of how vertical integration may deter entry "by reducing rivals' revenues". We examine a spatial market with the locations of firms fixed due to location-specific (sunk cost) investments at both the upstream and downstream level. We show that...
Report finds that firms who lose litigated FTC advertising cases can suffer a 5 percent loss in market value. The report also examined NAD, NARB, and Lanham Act cases.
The Staggers Act of 1980 largely ended almost a century of government regulation of railroads. This paper presents evidence that deregulation has had a positive impact on the economy. Specifically, deregulation has generated billions of dollars worth of efficiency gains, contrary to...

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